Connect with us

Hi, what are you looking for?

Breaking News

Wall Street Opens Higher on Last-Ditch Stimulus Hope; Dow up 150 Pts

imageStock Markets12 hours ago (Oct 19, 2020 09:44AM ET)

(C) Reuters.

By Geoffrey Smith

Investing.com — U.S. stock markets opened higher on Monday, buoyed by hopes for a last-minute agreement on a comprehensive fiscal stimulus package before the elections on November 3.

House Speaker Nancy Pelosi said at the weekend that there were still two days to bridge what appear to be still-wide differences with the Republican administration and Senate over a package, while Senate Leader Mitch McConnell said he would schedule votes on a suite of individual relief measures. While that is unlikely to be enough in itself to get any such measures enacted, it keeps the two sides at least superficially moving towards each other.

Trading is increasingly being overshadowed by the looming elections on November 3, with the consensus expectation of a ‘Blue Wave’ outcome encouraging expectations of a major fiscal stimulus package in the new year.

Analysts at Goldman Sachs (NYSE:GS) argued in a weekly preview that the size of future stimulus will depend largely on the margin of victory, adding that things depend “more on the outcome of Senate elections than the presidential election result.” Should the Republican Party keep control of the Senate, Jan Hatzius and his team argued, then the ultimate package is likely to be closer to the Senate’s current proposals than to the House’s.

By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was up 78 points, or 0.2%, at 28,676 points. The S&P 500 was also up 0.5% and the NASDAQ Composite was up 0.8%.

Oil and gas stocks were supported somewhat by the confirmation of ConocoPhillips (NYSE:COP) agreeing to buy shale producer Concho Resources (NYSE:CXO) for $9.7 billion, the biggest acquisition in the sector this year. However, a fourth straight quarterly loss and grim outlook from Halliburton (NYSE:HAL) underlined the problems the sector continues to face. ConocoPhillips stock was down 1.0%, on perceptions that it may have overpaid. Concho stock, which had risen over 10% last week on reports of the deal happening, gave up 0.2%.

Earlier, the day’s only data release of note, the NAHB housing market index, leaped to another all-time high of 83, underscoring the strength of the momentum in a housing market where the pandemic appears to have caused a wave of generational shift in preferences for larger, if less central, properties.

There were a couple of bright performances amongst beaten-down cyclical stocks, with Hertz Global (NYSE:HTZ) stock rising another 14% as its securing of debtor-in-possession financing carves out a path for it to leave Chapter 11 bankruptcy. United Airlines (NASDAQ:UAL) stock also rose 3.2% in anticipation of the FAA approving the return to service of the Boeing (NYSE:BA) 737 MAX.

AMC Entertainment (NYSE:AMC) stock meanwhile rose 15% after New York Governor Andrew Cuomo gave the go-ahead for theaters outside New York City to open from Friday. AMC said it will have some 530 theaters open by the end of the month, although whether that will be enough to convince the big studios to resume big releases over the holiday period will still depend on how the pandemic develops. The rate of new infections and hospital admissions in the U.S. has been rising constantly since mid-September.

Wall Street Opens Higher on Last-Ditch Stimulus Hope; Dow up 150 Pts

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Breaking News

SEC probing Nikola Motors over short-seller claims of fraud – Business Insider Business Insider logoThe words “Business Insider”. 2020-09-14T23:20:04Z Massimo Pinca/Reuters The Securities and...

Breaking News

Best exercise bikes of 2020: NordicTrack, Peloton, & others – Business Insider Business Insider logoThe words “Business Insider”. Back to TopA white circle with...

Breaking News

The $160,000 SS Dolphin is a hybrid 1950s Corvette clone from China – Business Insider Amazon Prime Day Business Insider logoThe words “Business Insider”....

Breaking News

Today, webmasters need to do everything possible to keep up with the competitors. Ideally, they should do everything possible to beat them. This,...

Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2020 Captain Of Success. All Rights Reserved.