US markets stage late rally

U.S. stocks swung into positive territory late Wednesday, as a key financial journal said the Federal Reserve is likely to extend its bond buying program. A Wall Street Journal article said the Fed was "likely" to buy bonds in 2013, which sparked a rally. Investors are also monitoring comments concerning budget talks in Washington that range from upbeat to dour. Erskine Bowles, former co-chairman of President Obama's debt commission, said he thought going over the so-called "fiscal cliff" was unavoidable while House Speaker John Boehner, R-Ohio, sounded more optimistic a budget deal to avoid the fiscal cliff was likely. Each comment in Washington is translated to stock activity -- plus and minus. A key player mentioning a deal could be made is bullish for Wall Street while pessimism on Capitol Hill concerning a budget deal gives bears the upper hand in New York. By close of trading, the Dow Jones industrial average gained 106.98 points or 0.83 percent to 12,985.11. The Nasdaq, down in the middle of the afternoon, closed with a gain of 23.99 points or 0.81 percent to 2,991.78. The Standard & Poor's 500 was up 10.99 points or 0.79 percent to 1,409.93. On the New York Stock Exchange, 2,083 stocks advanced and 928 declined on a volume of 3.3 billion shares traded. The 10-year treasury note rose 2/32 to yield 1.632 percent. The euro rose to $1.2947 from Tuesday's $1.2944. The dollar fell to 81.13 yen from 82.16 yen. Japan's Nikkei dropped 1.22 percent, 114.95 points, to 9,308.35.