Wall Street closes higher as new stimulus talks ease shutdown worries

By Stephen Culp (Reuters) - U.S. stocks ended in positive territory on Thursday as fresh stimulus hopes buoyed investor sentiment toward the end of a session fraught with worries over mounting shutdowns and layoffs linked to spiraling COVID-19 infection rates. All three major stock indexes got a healthy boost after Senate Minority Leader Chuck Schumer said Senate Majority Leader Mitch McConnell had agreed to revive talks to craft a new fiscal relief package.

Reuters November 20, 2020 03:05:39 IST
Wall Street closes higher as new stimulus talks ease shutdown worries

Wall Street closes higher as new stimulus talks ease shutdown worries

By Stephen Culp

(Reuters) - U.S. stocks ended in positive territory on Thursday as fresh stimulus hopes buoyed investor sentiment toward the end of a session fraught with worries over mounting shutdowns and layoffs linked to spiraling COVID-19 infection rates.

All three major stock indexes got a healthy boost after Senate Minority Leader Chuck Schumer said Senate Majority Leader Mitch McConnell had agreed to revive talks to craft a new fiscal relief package.

"We've seen this playbook before, where investors flock to the safety of tech and growth when the economy shows signs of slowing down," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina. "But everything changes now that there's hope of the next stimulus plan."

"Clearly markets are bouncing on that optimism."

Even so, spiraling COVID-19 infection rates turned investors toward market-leading growth stocks that have shown resiliency to the pandemic.

The Philadelphia SE Semiconductor index <.SOX>, which thrived throughout the health crisis, handily outperformed the broader market.

"In a COVID world, semis are a safer play as they're not impacted as much due to shutdowns," Detrick added.

The number of U.S. workers filing new claims for unemployment benefits unexpectedly rose last week, the data painting a grim picture of increasingly elevated layoffs as spiking coronavirus cases and subsequent shutdowns continue to hobble the labor market.

Record infection numbers have prompted schools and businesses to close once again, thwarting the recovery of the world's largest economy from the deepest recession since the Great Depression.

Unofficially, the Dow Jones Industrial Average <.DJI> rose 43.82 points, or 0.15%, to 29,482.24, the S&P 500 <.SPX> gained 14.06 points, or 0.39%, to 3,581.85 and the Nasdaq Composite <.IXIC> added 103.11 points, or 0.87%, to 11,904.71.

Third-quarter reporting season is nearing the finish line, with 472 of the companies in the S&P 500 having reported. Of those, 84.5% have beaten consensus, according to Refinitiv data.

Macy's Inc reported a 20% plunge in quarterly same-store sales and the department store forecast a tough holiday season.

Chipmaker Nvidia Corp forecast a slight dip in data center chip sales but the company beat quarterly revenue expectations.

L Brands Inc surged after posting better-than-expected quarterly results and a 56% jump in same-store sales.

Tesla Inc shares rose for the third straight session to touch a record high, riding the wave of its pending inclusion in the S&P 500, announced on Monday.

(Reporting by Stephen Culp; Editing by Tom Brown)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.