Yesterday they said that Tuesday was the last day that it was possible to reach agreement on stimulus and pass it in time for the election. Today they announced they were close and could possibly have a deal by the end of the week. Though it ran contrary to yesterday’s, it was enough to shoot the Dow up another 113 points, recovering some of yesterday’s big sell off. The antitrust suit against Google fell on deaf ears; not only is no one taking it seriously but it actually boosted Alphabet’s stock by 1.4 percent. Q3 now has 66 companies reporting with 86% beating forecasts. 8.7 billion shares were traded.
TUE OCTOBER 20, 2020 5:14 PM
Wall Street shares end higher on
stimulus optimism
DJ: 28,195.42 -410.89 NAS: 11,478.88 -192.67 S&P: 3,426.92 -56.89 10/19
DJ: 28,308.79 +113.37 NAS: 11,516.49 +37.61 S&P: 3,443.12
+16.20 10/20
NEW
YORK (Reuters) - Wall Street shares closed higher Tuesday on growing optimism
that U.S. lawmakers are nearing a deal on a stimulus package aimed at
cushioning the economic shock from the coronavirus pandemic. House of Representatives Speaker Nancy Pelosi
said late on Tuesday that she hoped a coronavirus aid agreement could be
accomplished by the end of this week.
Pelosi spoke with Treasury Secretary
Steven Mnuchin on the stimulus deal. “I
think no matter who gets elected, we will get the stimulus,” said Brian
Reynolds, chief market strategist, at Reynolds Strategy. “The current headlines are short term in
nature. Eventually, they
would get together and produce more stimulus for the economy because all the
sectors that are lagging need it badly,” he added. Uncertainty over the coronavirus aid package
weighed on Wall Street’s main indexes on Monday and analysts expect market
turbulence to increase with only two weeks left until Election Day.
The Dow
Jones Industrial Average .DJI closed up 113.37
points, or 0.4%, to 28,308.79, the S&P 500 .SPX ended 16.2 points
higher, or 0.47%, to 3,443.12 and the Nasdaq Composite .IXIC closed 37.51 points
higher, or 0.33%, to 11,516.49. A majority of the S&P sectors was up,
with financials .SPNY,
industrials .SPLRCI and
consumer discretionary .SPLRCD stocks underpinning gains.
The U.S. Justice Department and 11 states,
meanwhile, filed an antitrust
lawsuit against Alphabet Inc's GOOGL.O Google for allegedly breaking the law in
using its market power to fend off rivals. Alphabet's shares closed up 1.4%. “It’s like locking
the proverbial door after the horse has bolted,” said Neil Campling,
head of TMT research at Mirabaud Securities in London. “Google has already got the monopolistic
position, has invested billions in infrastructure, AI, technologies, software,
engineering and talent. You can’t simply unwind a decade of significant
progress, or create new alternative powerhouses or tech ecosystems out of thin
air.”
Meanwhile, the third-quarter earnings
season has gathered momentum. Of the 66 S&P 500 companies that have reported results, 86.4% have topped
expectations for earnings, according to Refinitiv IBES data. Property and casualty insurer Travelers Cos Inc TRV.N gained 5.6% as it beat quarterly profit
expectations, while consumer products giant Procter & Gamble Co PG.N advanced 0.4% as it raised its full-year sales and earnings
forecasts. After the bell, Netflix Inc NFLX.O fell
nearly 6% after reporting results that
missed expectations for paid subscriber additions in the third quarter, hit by
rising streaming competition and the return of live sports to television. International Business Machines Corp IBM.N edged past estimates for quarterly
revenue on Monday, bolstered by higher demand for its cloud services. The
company's shares, however, fell after it stayed away from issuing a
current-quarter outlook, citing economic uncertainty related to the pandemic.
Advancing issues outnumbered declining
ones on the NYSE by a 2.13-to-1 ratio; on Nasdaq, a 1.16-to-1 ratio favored
advancers. The S&P 500 posted 25 new
52-week highs and 1 new lows; the Nasdaq Composite recorded 69 new highs and 29
new lows.
Note: No volume data reported today but,
per the CBOE, 8.7 billion
shares were traded which continues to remain below the 4-week
average.
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