Dow rebounds from a 170 level loss and trades flat as Pelosi alerts progress on the stimulus deal
Shares spun Thursday after House spokeswoman Nancy Pelosi re-signaled that the Democrats and the White House were making headway on the US economic negotiations.
The Dow Jones Industrial Average was trading 25 points lower, or 0.1% lower, around 11:40 a.m. ET. The Dow had previously fallen 170 points; it was also slightly higher at one point. The S&P 500 was only 0.1% lower. The Nasdaq Composite was down 0.4%.
Pelosi said Thursday a deal for new coronavirus aid was “almost there”. She also said, “If we didn’t make progress, I wouldn’t spend five seconds in these talks. … This is nothing more than a serious attempt. I believe that both sides want an agreement.”
However, Pelosi noted that the two sides have yet to reach an agreement on certain key issues, including government and local funding. She also warned that it might take “a while” for lawmakers to actually write an auxiliary bill and vote on it.
Those comments came a day after Pelosi and Treasury Secretary Steven Mnuchin had a conversation that “brought them closer to pen-to-paper to write laws,” said Drew Hamill, Pelosi’s deputy chief of staff.
Despite Pelosi’s optimism, expectations for a law to be signed ahead of the November 3rd elections remain positive. President Donald Trump tweeted Wednesday: “Just don’t see Nancy Pelosi and Cryin ‘Chuck Schumer ready to do the right thing.” for our great American workers or our wonderful USA itself on stimulus. “
“With no clear end to the pandemic in sight, the economy needs additional fiscal support that will last for several months,” said Prajakta Bhide, strategist at MRB Partners, in a note. “Adopting a significant additional fiscal stimulus by early next year and better controlling the COVID-19 pandemic next year through timely approval of a medical solution will be critical to continued economic growth over the next year.”
The companies continued to file third-quarter earnings reports on Wednesday, with both electric car maker Tesla and burrito chain Chipotle providing information about their businesses to investors.
Elon Musk’s Tesla reported earnings per share of 76 cents for the fifth straight quarter versus the consensus estimate of 57 cents expected by analysts polled by Refinitiv. The company had previously reported that it had delivered 139,300 vehicles in the quarter, a new record for Tesla.
CEO Musk noted on the company’s earnings statement that Tesla plans to ship cars from new factories in Brandenburg, Germany and Austin, Texas starting in 2021, but that production might be slow at first. The share gained 2.7%.
Coca-Cola surged more than 1% after posting higher than forecast earnings for the previous quarter. CSX and AT&T also rose on better than expected gains.
Chipotle Mexican Grill posted a 5% decrease in equity after a shift in supply orders increased costs and resulted in a decline in beverage sales in the third quarter.
US officials said Iran was taking steps overnight to meddle in the US presidential election and Russia had received American voter information. The announcement by the country’s top intelligence officials came amid an already fierce election season, adding to uncertainty as the US tries to manage the health and economic consequences caused by the coronavirus.
The off-hours movements followed the losses on Wall Street during Wednesday’s regular session. The Dow Jones Industrial Average fell 97.97 points, or 0.4%, and returned more than 100 points earlier in the day. The S&P 500 fell 0.2% while the Nasdaq Composite was down 0.3% on Wednesday.
Regarding the data, the Department of Labor said weekly jobless claims fell to 787,000 in the week ended October 17. This is the first time since March that the claims are below 800,000. Economists surveyed by Dow Jones expected a total of 875,000 first-time applicants for state unemployment insurance.
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