Stocks rose on hopes a deal is taking shape in Washington to resolve the fiscal cliff. Investors shrugged off data showing that the Empire State manufacturing index worsened in December to -8.1, from -5.2 in November. Big banks and housing stocks were among the best performers. Also, Apple rose 1.8% as most analysts saw the iPhone 5 sales figures as positive, but Citigroup, Pacific Crest and Canaccord Genuity cut their price targets on the stock. Western Digital rose 0.69% as the Nasdaq added the co., along with Facebook, to its list of 100 largest nonfinancial stocks and removed Netflix, Research In Motion and Electronic Arts from the list. Texas Instruments rose 0.34%, despite brokerage Sterne Agee cutting its rating on the chip maker to neutral. Implied volatility inched lower on modest trading volumes.
