By Yasin Ebrahim
Investing.com – The Dow posted gains Thursday, led by value stocks like energy and finance in hopes the economy will see a much-needed fiscal boost after House spokeswoman Nancy Pelosi suggested a deal about the economy is close to the goal.
That increased by 0.57% or 160 points. That rose by 0.46%, while that rose by 0.16%.
Pelosi said an incentive deal was "almost there" but added that important issues, including state and local funding and liability coverage, remained to be resolved. These differences are unlikely to be resolved quickly in talks with the White House, chief economic adviser Larry Kudlow said.
However, any bill that would require Congress and Senate support could meet opposition from Senate GOP Chairman Mitch McConnell, who would need some leverage from President Donald Trump, Pelosi said Wednesday. Senate Republicans have focused on the size of the deal, which is valued at around $ 1.9 trillion and is still below the Democratic proposal of $ 2.2 trillion, as they favor targeted relief efforts.
In another upswing in economic sentiment, unemployment claims fell below 800,000 for the first time since the pandemic in mid-March.
According to the Ministry of Labor, 787,000 people have applied for unemployment insurance, a decrease of 55,000 from the downwardly revised 842,000 in the previous week and well above the forecast of economists for 870,000.
However, some economists asked whether the trend after rising Covid-19 cases will continue.
"(W) We doubt it will continue as Covid infections spread rapidly and depress demand for discretionary consumer services, especially in the hospitality industry," Pantheon Macroeconomics said in a note.
However, renewed hopes of a continuation of the economic recovery sparked a surge in value stocks, with financials and energy on the up.
Energy surged nearly 3% as oil prices recovered some of their losses from the previous day, when a surge in gasoline supplies heightened fears of slowing demand.
Financial stocks, meanwhile, were driven higher by a sharp rise in bank stocks as the favorable backdrop of rising government bond yields continued.
Wells Fargo (NYSE 🙂 and Bank of America (NYSE 🙂 rose more than 2%, while JPMorgan Chase (NYSE 🙂 rose 3%.
The profit parade took off when Mega Blue Chips reported quarterly performance.
Tesla Inc (NASDAQ 🙂 fell from session highs and rose 2% after the electric automaker announced it was on track for 500,000 deliveries this year, and reported quarterly results that outperformed both the upper and lower ranges were good.
The Coca-Cola Company (NYSE 🙂 was up 1% after better-than-expected quarterly results suggested the worst pandemic hit was in the rearview mirror as sales fell 6% for the quarter, a marked improvement on the slump of 26% in the second quarter.
The airlines, which are among the sectors hardest hit by the pandemic, reported mixed results as American Airlines (NASDAQ 🙂 reported closer-than-expected results, while Alaska Air Group Inc (NYSE 🙂 posted lower losses despite saying they did would have reduced their cash burn.
Tech was one of the biggest declines that day when the Fab 5 was trading. Apple (NASDAQ :), Amazon.com (NASDAQ :), Facebook (NASDAQ :), and Microsoft (NASDAQ 🙂 were below the flatline, while Goog-Parent Alphabet (NASDAQ 🙂 gave way.