Stimulus bets drive Wall Street higher
By Medha Singh and Shivani Kumaresan (Reuters) - Wall Street's main indexes climbed on Tuesday on growing signs that U.S.
By Medha Singh and Shivani Kumaresan
(Reuters) - Wall Street's main indexes climbed on Tuesday on growing signs that U.S. lawmakers were making headway in their talks over stimulus to support an economic recovery from the impact of the COVID-19 pandemic.
House of Representatives Speaker Nancy Pelosi said she was optimistic Democrats could reach a deal with the White House that could get aid out by early next month. She added there should be an indication of a possible agreement later on Tuesday.
Pelosi and Treasury Secretary Steven Mnuchin will also talk at 3 p.m. ET (1900 GMT) on Tuesday, according to a source.
"Visibly there is optimism that the stimulus deal is going to be done at the end of the day," said Matthew Stucky, portfolio manager, equities at Northwestern Mutual Wealth Management Co.
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.
Latest national opinion polls pointed to a victory for Democratic challenger Joe Biden, though the contest is closer in swing states that decide elections including Florida, North Carolina and Pennsylvania.
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 gained 5.2% as it beat quarterly profit expectations, while consumer products giant Procter & Gamble Co advanced 0.7% as it raised its full-year sales and earnings forecasts.
All 11 major S&P sectors were up, with financials, industrials and consumer discretionary stocks rising over 1%.
At 12:46 p.m. ET, the Dow Jones Industrial Average was up 249.70 points, or 0.89%, at 28,445.12 and the S&P 500 was up 33.38 points, or 0.97%, at 3,460.30. The Nasdaq Composite was up 98.53 points, or 0.86%, at 11,577.41.
Netflix Inc dipped 0.5% ahead of its third-quarter earnings report.
International Business Machines Corp edged past estimates for quarterly revenue on Monday, bolstered by higher demand for its cloud services. The company's shares, however, fell 5.9% after it stayed away from issuing a current-quarter outlook, citing economic uncertainty related to the pandemic.
The U.S. Justice Department and 11 states filed an antitrust lawsuit against Alphabet Inc's Google for allegedly breaking the law in using its market power to fend off rivals. Alphabet's shares were up 0.8%.
Advancing issues outnumbered decliners for a 3.36-to-1 ratio on the NYSE and a 1.57-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 57 new highs and 22 new lows.
(Reporting by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Shounak Dasgupta)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.