Wall Street closes higher on U.S. fiscal stimulus bets

In this news, we discuss the Wall Street closes higher on U.S. fiscal stimulus bets.

NEW YORK (Reuters) – Wall Street shares ended higher on Thursday in volatile trading, as investors applauded the prospect of further fiscal stimulus to support a pandemic-damaged US economy, with more data indicating a slowdown in the recovery of the labor market.

Wall Street trading this week has been fueled by a wave of reports related to developments in the stimulus talks.

US House of Representatives Speaker Nancy Pelosi reported progress in talks with the Trump administration for another round of financial aid and said legislation could be drafted “very soon.”

However, White House economic adviser Larry Kudlow warned that “significant political differences” remained, which would likely not be resolved until the November 3 election.

“These stimulus rumors continue to swirl,” said Mike Zigmont, head of trading at Harvest Volatility Management. “But I think the market is getting used to these rumors and each new rumor has less impact than before.”

He was also not convinced that another stimulus deal would pave the way for another bullish trend in stocks.

“The second stimulus as a subject has been launched for so long. Most of the economic consequences have already been incorporated into stock prices, ”Zigmont said.

“And now it’s a strictly emotional problem, a type of problem related to market perception.”

Pelosi and Treasury Secretary Steven Mnuchin negotiated a nearly $ 2 trillion relief bill, a sum that Senate Republicans have expressed concern about the federal deficit.

Also on Thursday, data showed the number of Americans claiming state unemployment benefits last week fell more than expected to 787,000, but remained stubbornly high as fiscal stimulus support waned. dimmed.

Unofficially, the Dow Jones Industrial Average .DJI rose 149.85 points, or 0.53%, to 28,360.67, the S&P 500 .SPX gained 16.74 points, or 0.49%, to 3452.3 and the Nasdaq Composite .IXIC added 13.58 points, or 0.12%, to 11,498.27.

Both .SPNY Energy and .SPSY Financials advanced, posting the largest gains among major S&P sectors.

Investors will follow the final presidential debate Thursday night between Trump and Democratic challenger Joe Biden, leading in national polls.

Meanwhile, about one-fifth of S&P 500 companies released third-quarter results, 84.1% of which beat earnings estimates, according to data from IBES Refinitiv.

Tesla Inc TSLA.O surged after the electric car maker reported its fifth consecutive quarterly profit with record revenue of $ 8.8 billion.

Chipotle Mexican Grill Inc CMG.N fell due to a drop in quarterly profit, affected by higher beef prices, delivery costs and coronavirus-related expenses.

Among blue-chip companies, Coca-Cola Co KO.N gained by beating expectations for quarterly results, while chemicals maker Dow Inc DOW.N fell 0.6% even as it exceeded quarterly profit estimates.

Reporting by Gertrude Chavez-Dreyfuss; Edited by David Gregorio

Original © Thomson Reuters

Originally posted 2020-10-23 03:26:11.

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