Wall Street climbs on optimism over stimulus deal talks

In this news, we discuss the Wall Street climbs on optimism over stimulus deal talks.

(Reuters) – Major Wall Street indices edged up at the opening Monday on hopes of a coronavirus vaccine by year-end, while investors were also encouraged by the signing of an agreement in Washington on a budget package could be reached soon.

Last week, the White House proposed a $ 1.8 trillion stimulus package, but House Speaker Nancy Pelosi had honored her request for $ 2.2 trillion in aid.

Pelosi said on Sunday that she wanted a bill passed before the November 3 presidential election, but acknowledged that a deal would have to be reached on Tuesday for that to happen.

“Today, relaunch has come to the forefront of the conversation without a doubt,” said Tom Mantione, Managing Director of UBS Private Wealth Management in New York.

Meanwhile, President Donald Trump and his Democratic challenger Joe Biden will debate one last time on Thursday with about two weeks before election day.

The NYSE FANG + TM Index, which includes core FAANG stocks, rose 0.8% as nine of the top 11 indices rose.

Major Wall Street indices posted slight gains last week – the third in a row for the benchmark S&P 500 and the blue chip Dow Jones – as the announcement of a COVID-19 vaccine could be available by the end of the year has helped offset concerns about the elusive federal aid bill.

After the financial sector set a mixed tone at the start of the third quarter earnings season, investors will look to the results of about 91 S&P 500 companies this week, including International Business Machines Corp and Netflix Inc.

Oilfield service provider Halliburton Co recorded its fourth consecutive quarterly loss as this year’s slump in oil prices due to the COVID-19 pandemic hit demand for its services. Its shares, however, increased by around 1%.

ConocoPhillips slipped 1.8% on agreeing to buy US shale oil producer Concho Resources Inc for $ 9.7 billion, as the energy sector continued to consolidate. Concho fell 1.1%.

At 9:39 a.m. ET, the Dow Jones Industrial Average was up 67.45 points, or 0.24%, to 28,673.76, the S&P 500 was up 16.57 points, or 0.48%, at 3500.38. The Nasdaq Composite rose 92.34 points, or 0.79%, to 11,763.89.

Chipmaker Microchip Technology Inc gained about 3% after Morgan Stanley raised the stock to “overweight”.

American Equity Investment Life Holding Co fell 11.8% after it said it entered into a strategic partnership with Brookfield Asset Management Inc and rejected an unsolicited acquisition proposal of Athene Holding Ltd and Massachusetts Mutual Life Insurance Co.

Rising issues outnumbered declines for a 1.86-to-1 ratio on the NYSE and a 1.98-to-1 ratio on the Nasdaq.

The S&P Index recorded 13 new 52-week highs and a new low, while the Nasdaq recorded 44 new highs and eight new lows.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Edited by Shounak Dasgupta

Original © Thomson Reuters

Originally posted 2020-10-20 01:16:11.

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