US stocks climb at open as stimulus deadline nears

Democrats and Republicans in Washington are in the final two weeks of negotiations before the November 3 presidential election on new spending measures to boost the US economy after the coronavirus pandemic caused grievous damage earlier in the year.
Democrats and Republicans in Washington are in the final two weeks of negotiations before the November 3 presidential election on new spending measures to boost the US economy after the coronavirus pandemic caused grievous damage earlier in the year.
Bloomberg Creative

A looming deadline for Washington policymakers to agree on a long-awaited US stimulus bill on Tuesday did not deter Wall Street traders from pushing major indices up at the open.

Shares dropped sharply on Monday, but about 40 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.8% to 28 433.59.

The broad-based S&P 500 gained 0.9% to 3 458.65 while the tech-rich Nasdaq rose 0.9% to 11 582.07.

Negotiations on a spending package to follow up on the $2.2 trillion CARES Act and aid the coronavirus-ravaged US economy have dragged on for months, and House Speaker Nancy Pelosi on Sunday gave a 48-hour deadline for negotiators to finalize a deal if it is to be passed before the November 3 election.

She is set to speak with her Republican counterpart Treasury Secretary Steven Mnuchin again on Tuesday, even as Senate Majority Leader Mitch McConnell has downplayed the possibility of a large package getting through his chamber.

McConnell on Monday said Senate lawmakers would vote on a more narrow, $500 billion measure to support small businesses but Democrats were sure to block the proposal.

Whatever the odds, Wells Fargo Advisors credited the upbeat sentiment to "investors (remaining) optimistic about a pre-election fiscal stimulus deal."

Meanwhile, Commerce Department data released before the market open showed housing construction grew modestly in September amid booming demand from home buyers, with residential construction rising 1.9% from August.

Single-family homes surged but weakness in multi-family unit construction held down overall growth.

Procter and Gamble shares rose 2.2% after posting better-than-expected earnings, increasing nine percent to $19.3 billion in the third quarter, well above the $18.3 billion analysts had forecast, boosted in part by pandemic-driven demand for cleaning products.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.16
(-0.38)
ZAR/GBP
20.26
(-0.16)
ZAR/EUR
18.07
(-0.32)
ZAR/AUD
11.17
(-0.39)
ZAR/JPY
0.15
(-0.51)
Gold
1813.64
(+0.31)
Silver
23.39
(+0.24)
Platinum
961.00
(+0.19)
Brent Crude
48.73
(+1.57)
Palladium
2357.00
(+1.96)
All Share
57909.70
(+0.29)
Top 40
53110.38
(+0.32)
Financial 15
11599.13
(-0.36)
Industrial 25
80084.79
(+0.31)
Resource 10
52857.89
(+0.48)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
22% - 339 votes
No, I did not.
51% - 799 votes
My landlord refused
28% - 434 votes
Vote