NEW YORK, Oct 19 — US stocks rose in opening trading today the start of yet another week where traders will closely monitor prospects Congress will pass a new stimulus package for the economy.
About 20 minutes after the open, the benchmark Dow Jones Industrial Average was up 0.3 per cent at 28,687.15.
The broad-based S&P 500 climbed to 0.5 per cent to 3,500.48, while the tech-rich Nasdaq rose 0.8 per cent to 11,763.78.
Democrats and Republicans in Washington are in the final two weeks of negotiations before the November 3 presidential election on new spending measures to boost the US economy after the coronavirus pandemic caused grievous damage earlier in the year.
President Donald Trump’s administration has proposed a US$1.8 trillion package, while Democrats in the House of Representatives have approved a US$2.2 trillion measure.
However, Senate Majority Leader Mitch McConnell said again last week that he prefers a narrowly tailored measure — which Democrats have rejected — and signaled he would not support the Trump administration’s push for a massive package.
White House chief of staff Mark Meadows today tried to downplay the Republican leader’s comments.
“If the speaker and the president can come together in a bipartisan deal, (McConnell will) bring it to the floor, it will get a vote... and hopefully we’ll get stimulus on the way to the American people,” Meadows told Fox News.
Stocks posted modest gains last week as the see-sawing stimulus talks rattled investors, but Charles Schwab investment bank said traders have not given up hope.
“Although fleeting, optimism appears to be remaining regarding a potential fiscal relief package breakthrough as talks continue but a deal remains elusive,” Schwab wrote in an analysis.
Oil giant ConocoPhillips was up 0.7 per cent after announcing before the open it would acquire shale oil rival Concho Resources in a transaction valued at US$9.7 billion.
Concho’s stock was trading 1.0 per cent higher. — AFP