Positive news from Washington on budget talks helped push stocks higher in New York Tuesday.
In early afternoon trading, the Dow Jones industrial average added 104.96 points or 0.8 percent tp 13,274.84.
The tech-heavy Nasdaq index gained 49.41 points or 1.66 percent to 3,027.45. The Standard and Poor's 500 added 12.58 points or 0.89 percent to 1,431.13.
Investors shrugged off a trade deficit report. The Commerce Department said the trade gap widened from $40.2 billion to $42.2 billion in October.
The 10-year treasury note fell 11/32 to yield 1.658 percent.
The euro rose to $1.3006 from Monday's $1.2941. The dollar rose to 82.46 yen from 82.36 yen.
Japan's Nikkei 225 index lost 0.09 percent, 8.43 points, to 9,525.32.
Britain's FTSE 100 index gained 0.06 percent, 3.34 points, to 5,924.97.