Dow rises 100 points — now at its highest level in a month
Stocks rose on Thursday as traders weighed the latest comments from House Speaker Nancy Pelosi and President Donald Trump regarding further fiscal aid.
The Dow Jones Industrial Average closed 122.05 points higher, or 0.4%, at 28,425.51 and reached its highest level in a month. The S&P 500 gained 0.8% to end the day at 3,446.83 and the Nasdaq Composite advanced 0.5% to 11,420.98.
Pelosi, D-Calif., told reporters there will not be a stand-alone stimulus bill for airlines — something President Donald Trump had pushed for the day before — without a bigger aid package. Earlier in the day, Trump told Fox Business that the administration and Democrats were “starting to have some very productive talks.”
“We’ll see if we can get something done before the election. That would be a favorable outcome,” said Gregory Faranello, head of U.S. rates trading at AmeriVet Securities. “If that starts to turn around, then we could see another blip in the market like the one we saw on Tuesday.”
Investors also digested the latest U.S. weekly jobless claims data on Thursday, which showed an additional 840,000 Americans filed for unemployment benefits for the first time.
Stocks look to be setting up for a year-end rally despite election worries and lack of stimulus
Technical analysts say they see underlying trends that signal strength and further gains, including broader groups of stocks participating, like small caps. The small cap Russell 2000 was up 5.6% week-to-date, compared to a 2.8% gain for the S&P 500.
Analysts say the stock market often makes a turn in mid-October after a poor September and choppy start to October. This year, there have been more worries than usual surrounding the presidential election, including that there may not be a clear winner right away or that the election itself could be contested.
Reference: CNBC
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