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Dow Trims Some Gains as Pelosi Rejects Piecemeal Stimulus

Published 10/08/2020, 01:13 PM
Updated 10/08/2020, 03:05 PM
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com – The Dow cut some gains on Thursday after U.S. House Speaker Nancy Pelosi said she would not back airline relief without a broader coronavirus aid package, cooling investor hopes for further stimulus.

The Dow Jones Industrial Average rose 0.21%, or 70 points. The S&P 500 was up 0.63%, while the Nasdaq Composite added 0.32%.

"There is not going to be any stand-alone bill unless there is a bigger bill and it can be part of that, or it could be in addition to it," Pelosi said.  Earlier this week, Trump said he was ready to sign off on standalone stimulus bills, including support for individuals, small businesses and airlines.  

Airlines dropped on the news, but pared some losses. 

Delta Air Line (NYSE:DAL), United Airlines Holdings (NASDAQ:UAL), and American Airlines Group (NASDAQ:AAL) were in the green.

American Airlines told CNBC it would be forced to terminate service to additional U.S. markets without additional aid from Congress.

Stocks tied to the economy, however, continued to trend above the flatline, with financials, industrials, and energy higher. 

Energy led the broader market higher, underpinned by rising oil prices amid hurricane-related disruptions in the U.S. Gulf of Mexico and positive comments from OPEC on long-term oil demand.

OPEC forecasts global oil demand will surpass the pre-pandemic levels in 2022 and grow steadily until the late 2030s, when it will begin to plateau.

Tech, meanwhile, continued to rack up gains.  Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), and Alphabet (NASDAQ:GOOGL) traded higher.

Elsewhere in tech, International Business Machines (NYSE:IBM) said it would spin off its managed infrastructure services business into a separate public company. The move comes as 'Big Blue' seeks to ramp-up its hybrid cloud growth.

" IBM is essentially getting rid of a shrinking, low margin operation given the cannibalizing impact of automation and cloud, masking stronger growth for the rest of the operation," Wedbush said, though added that IBM's medium-term growth forecasts appeared "aggressive."

Tesla (NASDAQ:TSLA) also fueled the move higher in the tech-heavy Nasdaq, rising 1% after New Street upgraded the stock to buy from neutral, with a street-high price target of $578.

On the economic front, the Labor Department said 840,000 people filed for unemployment support for the first time in the week ended October 3, down 9,000 from the prior week's upwardly revised 849,000, and above economists' estimate of 820,000.

Latest comments

no deal unless she gets money in her bank accounts
it is not about which parties, it is about the problematic Trump! The latest example, one day he cancelled the stimulus talk the next day he said want a stimulus larger than that of the democrats. This is only one example of the uncountable many.
it's amazing how many Dems will talk down with pompous attitudes, but do no research. if you research what the Dems want the money for, you too would not do a deal. You would also vote all red. Look at the dem cities. That is your future. High homeless rates, te rr or in the streets, and politicians stealing your money. Have fun. Go to Venezuela first and see how great is can be
correct they want to steal our money 1 check for you 1 for them theirs will be much much larger
she is a real beauty what a face
Absolutely
when she was 25 I'd have done her anytime
"'Democracy isn't the objective': Republican U.S. senator draws Democrats' ire" https://www.investing.com/news/politics/democracy-isnt-the-objective-republican-us-senator-draws-democrats-ire-2319648
well done Nancy..kick the ******of that chicken spoilt narcissist...
What about that covid spreading narcissist 🤡 in the office then?
Trump has her boxed in. I don't care for negotiating in the media but that's how she wants to play it.
wasnt trump anti pelosi ?
wasnt trump.anti pelosi ?
Pelosi is nothing but anti Trump. She serves no other purpose at this point.
just pro himself
"'Democracy isn't the objective': Republican U.S. senator draws Democrats' ire" https://www.investing.com/news/politics/democracy-isnt-the-objective-republican-us-senator-draws-democrats-ire-2319648
Exactly why he Won the presidency.
Thankyou Madam Speaker.
What happens 6 months from now if we are dealing with the same problems? Sometimes it's better to have market forces do what it's suppose to do. Whether it's the airlines, state/local governments, or any other type of business entities - allowing the weak to fail is the best course of action. I rather have a do nothing congress than a congress that spends like a drunken sailor.
Before they just had a few...now they’re punch drunk too.
Recession
It wouldn't be the first. History shows us that economies will rise and fall (and repeat). The consequences of not spending your money wisely will be far worse in the future.
Her Bill wants... Removal of Voter-ID laws Same day Voter Registration... So its like I travel interstate on election day, and simply walk into some random polling booth and register and vote.. If there is any pea-brainer who can't see this as a case for fraud, Then I have a bridge to sell in Brooklyn.
The NY Post? Do you also have some articles from the National Enquirer you would like to reference?
by now you have to pay off the debts created by Republicans socializing the losses
 Sorry, Nytimes, WaPO, CNN, MSNBC all lost credibility in the last few years... Specially after the Russia Hoax bombed, and Latest news is they planted the "Undecided Voters" to sway to Biden, when infact they were decided voters... MSM wants me to listen to them and nod like a sheep, isn't happening..
I've said it before, and I'll say it again. If Trump loses this election, state successions will begin.
If those are the states leaving, they'd better add pictures to their new constitutions.
yep, get read of the grazy states
30 states voted for Trump. He may win 32 this time.
Maybe now Trump can stop sending tweets trying to desperately reverse his earlier cancelling talks tweet which ended his political hopes and pretty much guaranteed the loss of the Republican senate
Narcissists do those silly stunts alot: they tear something down willfully, then they act apologetical. Narcissists love chaos. Go educate urself on narcissists. They stretch ppl's patience. No country deserves a narcissist leader. Narcissists as extreme as Trump are toxic
Nancy is exactly the same. How many time's has held Americans Hostage?
Republicans want it there way or the highway. We're tired of your way!
Republicans??You should take a look in the mirror. Democrats are the ones who can't/won't compromise.
Are We ??
Yet the market is flying high. Can't figure.
the market has two drivers, the expectations for the next future, may be six month, and second the gamblers. since march the gamblers are steering the boat. everybody is free to jump on
Pure Evil. There will be a special place in *****for Democrats.
She wasnt the one who started it, the covidlot in office did
Pelosi has her marching orders to get money for giveaways in the big democratic cities. She really doesn’t care about helping the airlines or small business. The economy will recover alittle more slowly but it will be stronger without the added debt. Actually a good thing
George Soros positioning his portfolio based on getting money he hasn't made being on the wrong side since 2016
Eddie Glass should be on the ballot :)
I suggest the airlines cut service to National, Dulles, and BWI.
70000 airline employees are going to lose their job and market is up, cant understand stock market
I thought REPUBLICANS hate socialism... Actually they love socialism if it is corporate and farmers welfare.
Wanna eat dont you
both parties are SICK
Pelosi will go down with the rest of her party..
why bailout air liners? let share holders get hit. I thought we have a capitalism not those corporate socialism.
Airlines already got bailed out this year!!
three is no such thing called full free market. the government should always act as a last resort in once in a century events
three is no such thing called full free market. the government should always act as a last resort in once in a century events
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