Tech stocks extend Wall Street rally on stimulus hopes
By Medha Singh and Shivani Kumaresan (Reuters) - Wall Street's main indexes rose for a fourth straight session on Monday on optimism that a coronavirus relief package would eventually come around, while investors geared up for the third-quarter corporate earnings season. Technology stocks provided the biggest boost to all three main indexes as Apple Inc jumped 5.3% ahead of a special event on Tuesday, which most analysts believe will be used to unveil the new iPhone with 5G capabilities.
By Medha Singh and Shivani Kumaresan
(Reuters) - Wall Street's main indexes rose for a fourth straight session on Monday on optimism that a coronavirus relief package would eventually come around, while investors geared up for the third-quarter corporate earnings season.
Technology stocks provided the biggest boost to all three main indexes as Apple Inc jumped 5.3% ahead of a special event on Tuesday, which most analysts believe will be used to unveil the new iPhone with 5G capabilities.
Amazon.com Inc climbed 5.1% ahead of its annual Prime Day shopping event on Oct. 13 and 14.
The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill as negotiations on a broader package ran into resistance.
"The market has come to a realization that stimulus is going to be coming ... no matter who is the president. It's probably going to be coming about a month out from now," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC.
A recent Reuters/Ipsos poll showed Americans were steadily losing confidence in President Donald Trump's handling of the COVID-19 pandemic, with his net approval on the issue hitting a record low.
Growing expectations of a Democratic win in next month's presidential election have also helped Wall Street's main indexes climb to one-month highs as a victory for Democratic nominee Joe Biden could ease the trade war with China and resulting tariff pressures on the U.S. economy.
The S&P 500 was less than 2% away from surpassing its record closing high from Sept. 2 that would mark a complete recovery from a 9% pullback.
With the Oct. 15 presidential debate officially canceled, Trump plans to travel to key battleground states this week as his doctor declared he was no longer a transmission risk for the novel coronavirus .
Results from big U.S. banks will be in focus this week, with JPMorgan & Co and Citigroup set to report on Tuesday. Bank shares gained 0.6%.
Overall, analysts expect third-quarter earnings for S&P 500 companies to fall 20.7% from a year earlier, smaller than a 30.6% slump in the second quarter.
At 12:32 p.m. ET, the Dow Jones Industrial Average was up 305.52 points, or 1.07%, at 28,892.42, the S&P 500 was up 60.93 points, or 1.75%, at 3,538.06, and the Nasdaq Composite was up 299.29 points, or 2.58%, at 11,879.24.
The consumer discretionary index hit an all-time high and, along with tech and communication services, rose the most among major S&P sectors.
The energy index was the weak spot, as oil prices dropped on easing supply worries.
Twitter Inc gained 5% after Deutsche Bank upgraded the social media company's shares to "buy" on expectations of continued growth in 2021.
Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.49-to-1 ratio on the Nasdaq.
The S&P index recorded 65 new 52-week highs and no new low, while the Nasdaq recorded 149 new highs and 10 new lows.
(Reporting by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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.