Stocks rose Thursday but in choppy trading after House Speaker Nancy Pelosi told Treasury Secretary Steven Mnuchin she wouldn’t agree to a standalone relief bill for airlines without a guarantee they would address a more comprehensive package.
“They just want money for the president to spend money on who knows what?” Pelosi said at a news conference Thursday. “There is no stand-alone bill without a bigger bill.”
The Dow Jones Industrial Average rose 107 points, or 0.38%, to 28,410, the S&P 500 gained 0.69% and the Nasdaq was up 0.34%.
Wall Street had been feeling optimistic lawmakers could secure further fiscal stimulus for the U.S. economy even if it comes in the form of smaller relief bills.
President Donald Trump told Fox Business on Thursday that stimulus talks, which he declared over earlier this week, were showing progress, and could include support beyond the airline sector.
“A compromise on a big stimulus package in Washington could potentially deliver another October surprise, but the odds are against it as Election Day approaches,” said LPL Financial equity strategist Jeffrey Buchbinder. “The optics of getting nothing done aren’t great on either side, and there are a lot of close Senate races right now, suggesting there still may be a glimmer of hope for a deal by Nov. 3.”
“Even though there is uncertainty now about the fiscal stimulus negotiations, regardless of who wins the election, we are likely to have additional fiscal stimulus,” said Nancy Davis, founder of Quadratic Capital and portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge ETF IVOL.
Morgan Stanley’s agreement to acquire Eaton Vance for $7 billion boosted sentiment.
International Business Machines rose after the computer giant said it would spin off its infrastructure division, helping IBM concentrate its focus on hybrid cloud growth.
Shares of Regeneron Pharmaceuticals surged Thursday after President Donald Trump praised its coronavirus antibody treatment and the drugmaker said it would seek emergency use authorization from the Food and Drug Administration.
Stocks finished sharply higher Wednesday after Trump said he would consider alternative aid measures such as a new round of stimulus checks, the Paycheck Protection Program and support for airlines. House Speaker Nancy Pelosi had signaled on Wednesday that she supported a standalone airline stimulus bill.
Jobless claims in the U.S. remain elevated, with the latest weekly data showing an additional 840,000 Americans filed for first-time unemployment benefits.
This article was originally published by TheStreet.