Wall Street shares end higher on stimulus optimism

In this news, we discuss the Wall Street shares end higher on stimulus optimism.

NEW YORK (Reuters) – Shares on Wall Street closed higher on Tuesday on growing optimism that U.S. lawmakers are set to strike a deal on a stimulus package aimed at cushioning the economic shock of the coronavirus pandemic.

House Speaker Nancy Pelosi said on Tuesday evening she hoped a coronavirus aid deal could be reached by the end of this week.

Pelosi spoke with Treasury Secretary Steven Mnuchin about the stimulus deal.

“I think it doesn’t matter who gets elected we’ll get the stimulus,” said Brian Reynolds, chief market strategist at Reynolds Strategy.

“The current headlines are short-term in nature. Eventually, they would come together and produce more stimulus for the economy because all the sectors that are lagging behind are in dire need of it, ”he added.

Uncertainty over the coronavirus aid program weighed on major Wall Street indices on Monday, and analysts expect market turbulence to increase with just two weeks to go before election day.

The Dow Jones Industrial Average .DJI closed up 113.37 points, or 0.4%, at 28,308.79, the S&P 500 .SPX finished 16.2 points higher, or 0.47%, at 3443 , 12 and the Nasdaq Composite .IXIC closed 37.51 more points, or 0.33%, at 11.516.49.

A majority of S&P sectors were higher, with .SPNY Financials, Industrials .SPLRCI and Consumer Discretionary .SPLRCD stocks supporting the gains.

The US Department of Justice and 11 states, meanwhile, have filed an antitrust lawsuit against Alphabet Inc.’s GOOGL.O Google for allegedly breaking the law by using its market power to fend off rivals. Alphabet shares closed 1.4% higher.

“It’s like locking the proverbial door after the horse has locked itself,” said Neil Campling, head of TMT research at Mirabaud Securities in London.

“Google already has the monopoly position, has invested billions in infrastructure, artificial intelligence, technology, software, engineering and talent. You can’t just roll out a decade of meaningful progress or create new alternative power plants or technological ecosystems from scratch. “

Meanwhile, the third quarter earnings season has accelerated. Of the 66 S&P 500 companies that released results, 86.4% exceeded earnings expectations, according to data from Refinitiv IBES.

Property and casualty insurer Travelers Cos Inc TRV.N grew 5.6% beating quarterly profit expectations, while consumer products giant Procter & Gamble Co PG.N rose 0.4% as it increased its sales and profit forecasts for the full year.

After the bell, Netflix Inc NFLX.O fell nearly 6% after reporting below-expectations for third-quarter paid subscriber additions, hit by growing competition from streaming and the return of sports in live on television.

International Business Machines Corp. IBM.N slightly exceeded quarterly revenue estimates on Monday, supported by increased demand for its cloud services. The company’s shares, however, fell after refraining from releasing an outlook for the current quarter, citing economic uncertainty related to the pandemic.

Rising issues outnumbered falling issues on the NYSE by a ratio of 2.13 to 1; on the Nasdaq, a ratio of 1.16 to 1 favored the advancers.

The S&P 500 posted 25 new 52 week highs and 1 new low; the Nasdaq Composite recorded 69 new highs and 29 new lows.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Aurora Ellis

Original © Thomson Reuters

Originally posted 2020-10-20 14:46:11.

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