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Dow Gets Pelosi Boost on Signs Stimulus Deal Near

Stock MarketsOct 22, 2020 03:13PM ET
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© Reuters

By Yasin Ebrahim

Investing.com – The Dow notched gains Thursday, led by value stocks like energy and financials, on hopes the economy is set to get a much needed fiscal boost after House Speaker Nancy Pelosi suggested an agreement on stimulus was nearing the finish line.

The Dow Jones Industrial Average rose 0.57%, or 160 points. The S&P 500 was up 0.46%, while the Nasdaq Composite added 0.16%.

Pelosi said a deal on stimulus “just about there," though added that key issues including state and local funding as well as liability protection were yet to be resolved. These differences, however, are unlikely to meet a speedy resolution in talks, White House Chief Economic Advisor Larry Kudlow said.

Still, an eventual bill, which requires congress and senate backing, could meet opposition from Senate GOP leader Mitch McConnell, who would need some swaying from President Donald Trump,  Pelosi said on Wednesday. Senate Republicans have bulked at the size of the deal on the table, believed to be around $1.9 trillion, still below the Democrats' $2.2 trillion proposal, as they prefer targeted relief measures.  

In another boost to sentiment on the economy, jobless claims fell below 800,000 for the first since the pandemic struck in mid-March.

The Labor Department said 787,000 people filed for unemployment insurance, down 55,000 from the prior week's downwardly revised 842,000, and well above economists' forecast for 870,000.

Some economists, however, questioned whether the trend will continue in the wake of rising Covid-19 cases.

"[W]e doubt it will continue as Covid infections spread rapidly, pushing down demand for discretionary consumer services, especially in the hospitality sector," Pantheon Macroeconomics said in a note.

The renewed hopes for the economic recovery to continue, however, triggered a climb in value stocks with financials and energy in the ascendency.

Energy jumped nearly 3% as oil prices clawed back some of their losses from a day earlier, when a jump in gasoline supplies intensified fears of demand weakening.

Financials, meanwhile, were pushed higher by a sharp uptick in banking stocks as the favorable backdrop of rising Treasury yields continued.

Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC) were up more than 2%, while JPMorgan Chase (NYSE:JPM) climbed 3%.

The earnings parade gathered pace as mega blue chips reported quarterly performance.

Tesla Inc (NASDAQ:TSLA) eased from session highs to trade up 2% after the electric automaker said it was on track to for 500,000 deliveries this year, and reported quarterly results that beat on both the top and bottom lines.

Coca-Cola Company (NYSE:KO) added 1% after its better-than-expected quarterly results suggested the worst of the hit from pandemic was in the rearview mirror as sales fell 6% in the quarter, a marked improvement from the 26% slump in the second quarter.

Airlines, among the hardest hit sectors from the pandemic, reporting mixed results as American Airlines (NASDAQ:AAL) reported narrower-than-expected results, while Alaska Air Group Inc (NYSE:ALK) revealed deeper losses, though said it had cut its cash burn.

Tech was among the biggest decliners on the day as the fab 5 traded slipped. Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT) were below the flatline, while Goog-parent Alphabet (NASDAQ:GOOGL) bucked the trend lower.

Dow Gets Pelosi Boost on Signs Stimulus Deal Near
 

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Comments (41)
Joshhua Ray
Joshhua Ray Oct 23, 2020 5:25PM ET
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Pelosi uses the 🔌 in her basement to charge 🤖 her processing ability; her hashrate is that of the Bitcoin blockchain. 😹🤣🌎📈🤫🐧🌊
Bulls MakeMore
Bulls MakeMore Oct 23, 2020 1:20PM ET
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If that headline is accurate, the Dow is foolish
Ricardo Diogo
rcd72 Oct 23, 2020 11:08AM ET
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bla bla bla
Nirbhay Kulkarni
Nirbhay Kulkarni Oct 23, 2020 10:40AM ET
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trump has to declare stimulus more than 2.2 otherwise he will loose.
sahil singh
sahil singh Oct 23, 2020 6:38AM ET
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lock her up
J C
J C Oct 23, 2020 3:04AM ET
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Not happening before election
Leeko Williams
Leeko Williams Oct 23, 2020 12:29AM ET
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Fake news
Mark Jones
Mark Jones Oct 23, 2020 12:28AM ET
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Since when does Wall Street listen to Pelosi?
Ronald Warren
Ronald Warren Oct 22, 2020 8:10PM ET
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LYING SUNZUVEACHES!!
some guy
some guy Oct 22, 2020 6:38PM ET
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b to the s
Suresh Kannan
Suresh Kannan Oct 22, 2020 5:16PM ET
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I dont think stimulus announcement will come before the results.... market will fall next week and will take three weeks to regain the lost grounds..
Robert Cox
Robert Cox Oct 22, 2020 5:16PM ET
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Speaking hypothetically, let's assume a deal is reached between Pelosi and WH prior to the election but does not get voted on until after. Also, let's assume Trump loses the election. Do you think Trump would veto his own deal?Also, if Democrats take WH and Republicans keep the Senate, does this actually go anywhere?
Jay Sims
Jay Sims Oct 22, 2020 5:16PM ET
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Great points... Makes the Democrat's blocking this week of the targeted stimulus for small businesses and the unemployment even more baffling.
Plopseven Schwartz
Plopseven Schwartz Oct 22, 2020 5:16PM ET
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Jay Sims You mean the “skinny” bill that didn’t seriously address real issues and was political posturing for the Republicans before the election?
Skinny Hardaway
Skinny Hardaway Oct 22, 2020 4:45PM ET
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starting to wonder if they're even discussing the stimulus at all anymore lol
MICHAEL MARS
MICHAEL MARS Oct 22, 2020 4:12PM ET
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STOP THE LIES AMERICA ECONOMY COLLAPSED SO WILL THE DOLLAR
Andrew carson
Andrew carson Oct 22, 2020 3:46PM ET
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milena villa escobar
milena villa escobar Oct 22, 2020 3:28PM ET
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thank God we only have to listen to this old bag for a couple more months.  You know the hard left (96 seats) wishes they had never heard of her
XEVEN st
XEVEN st Oct 22, 2020 3:28PM ET
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no kidding, https://investing.com has become the pelosi channel
Graham Hart
Graham Hart Oct 22, 2020 3:20PM ET
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narrative smelling like the "China trade negotiations" we kept hearing about daily in 2018-2019. follow price, ignore the news.
Jack Hoodie
Jack Hoodie Oct 22, 2020 3:19PM ET
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5 years from now: "Dear fellow citizens, as I'm standing here, I'm very proud to announce that the stimulus talks are heading towards a positive direction"
Tom Daniel
Tom Daniel Oct 22, 2020 3:05PM ET
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Repeat after me. Cultural Marxism. Study up. Stop listening to old hags like her.
Chad Olsen
Chad Olsen Oct 22, 2020 3:05PM ET
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Wonder why people believe conspiracy theories? Are they so narrow minded or uneducated?
sal galeano
sal galeano Oct 22, 2020 3:05PM ET
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pseudo-intellectual phrasing. study up. stop listening to old farts like tom Daniel.
Tom Daniel
Tom Daniel Oct 22, 2020 3:05PM ET
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Is that what you call the truth? We love America and you want to turn it into the place where you come from? You know what that means right? Think 1776
Ricardo Diogo
rcd72 Oct 22, 2020 3:00PM ET
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it is below 800,000 not 700,000, Reuters refers that the decrease is due to loss of illegible beneficiaries ... and after 1 month on this "around the corner" "close" .... stimulus agreement it is becaming really ridiculous
Birdy bird
Birdy bird Oct 22, 2020 2:58PM ET
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Might as well say it got a boost from signs that I may go grocery shopping. But at least the financial fanfic du jour finally doesn't have the word "amid" every three lines.
Stephen Corsaro
Stephen Corsaro Oct 22, 2020 2:52PM ET
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and the people who come running evey time.
Stephen Corsaro
Stephen Corsaro Oct 22, 2020 2:50PM ET
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and the wolf who cried "foul"
Stephen Corsaro
Stephen Corsaro Oct 22, 2020 2:49PM ET
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the girl who cried "wolf!".
Jim Robertson
Jim Robertson Oct 22, 2020 2:48PM ET
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Leslie Stahl should be FIRED IMMEDIATELY !!!!!!!!!!!!!!!!!!!!#WORTLESSONESIDEDREPORTER.
Chad Olsen
Chad Olsen Oct 22, 2020 2:48PM ET
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Only a Sith deals in absolutes.
 
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