Stock Market Today: Glimmer of Stimulus Hope Gives Stocks a Small Lift
Tuesday's rigid stimulus deadline seemingly blurred as House Democrats and the White House made progress toward a middle ground.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
When is a deadline not a deadline? Apparently – and fortunately, for the stock market – when it relates to politicians passing a stimulus deal.
House Speaker Nancy Pelosi on Tuesday walked back her comments setting a hard deadline of today to strike an agreement, but for reasons most investors could get behind. That is, Democrats and the White House are said to be nearing a middle ground in their negotiations, and Pelosi had a 3 p.m. talk set with Treasury Secretary Steven Mnuchin.
Also helping buoy spirits were a few strong results from the third-quarter earnings slate.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Insurer Travelers (TRV, +5.6%) posted Street-beating profits despite higher-than-usual catastrophe losses. And Procter & Gamble (PG, +0.4%) enjoyed higher demand for cleaning and laundry products, which lifted the company's sales and earnings ahead of estimates.
"PG has been building momentum longer than most of its peers and well before Covid-19 hit, which is one reason we view PG as a post-pandemic winner," writes CFRA analyst Arun Sundaram, who rates PG shares at Buy. "Additionally, the investments PG has made in its brands, capabilities, and organization are just beginning to pay off and should manifest into more market share gains."
The Dow Jones Industrial Average closed up 0.4% to 28,308, while the S&P 500 (+0.5% to 3,443) and Nasdaq (+0.3% to 11,516) also headed to higher ground.
Other action in the stock market today:
- The S&P 500 gained 0.5% to 3,443.
- The Nasdaq Composite improved by 0.3% to 11,516
- The Russell 2000 finished 0.3% higher to 1,618.
- The Justice Department on Tuesday sued Alphabet’s (GOOGL) Google division, filing a 57-page complaint accusing the search giant of violating federal antitrust laws to protect its wide lead in online search. It seemingly had little effect on shares, which gained 1.4%.
What About That Long-Rumored Infrastructure Week?
We mentioned yesterday that, broadly speaking, experts expect a next round of stimulus is likely a matter of when, not if.
"Overall, September's employment report, combined with ongoing virus concerns, should signal to political leaders that the fragile recovery requires additional stimulus as a means to support the labor market," says Charlie Ripley, Senior Investment Strategist for Allianz Investment Management.
But UBS, in a note upgrading its price target on Caterpillar (CAT, +0.9%), from $130 per share to $180, says it has its eye on a particular type of spending: infrastructure.
"We think the increased likelihood of a major infrastructure stimulus is now a function of greater need, as measured by current unemployment levels, and potential for Congressional alignment on funding," analyst Steven Fisher says.
Indeed, infrastructure spending might happen in a second Trump term, though the Democrats' platform is infrastructure-friendly, too, reflected in several so-called Biden stocks. If this kind of spending is indeed in the cards, Caterpillar and other industrial stocks would stand to benefit.
But also keep your eye on mining stocks – miners of commodities such as iron and aluminum could get a boost from either party's infrastructure plan, but additional stimulus spending of any sort could also bolster the price of gold – and the shares of companies who mine it. Read on to discover several types of mining stocks to consider for the months ahead.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
Nasdaq Adds 211 Points as Greenland Tensions Ease: Stock Market TodayWall Street continues to cheer easing geopolitical tensions and President Trump's assurances that there will be no new tariffs on Europe.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
