Debt ceiling talks push stocks higher

NEW YORK (AP) - Stocks rose Monday, helped by signs that Washington was moving closer to a deal that would avert a default by the U.S. government.

The stock market started the session broadly lower after negotiations between the White House and House Republicans broke down over the weekend. However, stocks erased those losses in early afternoon trading following news that President Barack Obama would meet with Congressional leaders.

The market extended those gains after Senate leaders in both parties said progress was being made.

The Dow Jones industrial average added 64.15 points, or 0.4 percent, to close at 15,301.26. The index was down as much as 100 points earlier in the day.

The Standard & Poor's 500 index rose 6.94 points, or 0.4 percent, to 1,710.14. The Nasdaq composite rose 23.40 points, or 0.6 percent, to 3,815.27.

The United States will reach the limit of its borrowing authority Thursday, according to Treasury Department estimates. If the debt ceiling is not raised, investors fear the U.S. could default on its borrowings in the coming weeks.

Monday's modest gains follow a surge in the market last week on signs of progress between Congressional Republicans and the White House.

Investors continue to express hope that a deal can be reached before the debt crisis causes any lasting damage. In the last few years, political deals over major budget disputes have gone down to the last minute.