Wall Street’s main indexes were set to inch higher at the open on Monday on hopes of a coronavirus vaccine by the year-end, while investors were also encouraged by signs an agreement in Washington on a fiscal package could be reached soon.
Last week the White House proposed a $1.8 trillion stimulus but House Speaker Nancy Pelosi had stuck to her demand for a $2.2 trillion aid.
Pelosi said on Sunday she wanted a bill passed before the Nov. 3 presidential election, but acknowledged an agreement would have to come within 48 hours for that to happen.
“Today, stimulus has come to the front of the conversation without question,” said Tom Mantione, managing director of UBS Private Wealth Management.
“(The Republicans and Democrats) closed a $2 trillion gap to $500 billion in 6 weeks. May be in 36 hours we can close the other $500 billion.”
Meanwhile, President Donald Trump and his Democratic challenger Joe Biden will debate for a final time on Thursday with about two weeks left until Election Day.
U.S. planemaker Boeing Co’s shares rose about 0.8% in premarket trading as American Airlines Group announced plans to return its 737 Max jets to service by the end of 2020 depending on certification of the aircraft from the Federal Aviation Administration.
Wall Street’s main indexes logged slight gains last week — the third in a row for the benchmark S&P 500 and the blue-chip Dow — as news that a COVID-19 vaccine could be available by November helped offset worries about the elusive federal aid bill.
After the financial sector set a mixed tone to the start of third-quarter earnings season, investors will look to results from about 91 S&P 500 companies this week including International Business Machines Corp and Netflix Inc.
Oilfield services provider Halliburton Co dipped 0.4% after posting its fourth consecutive quarterly loss as this year’s slump in oil prices due to the COVID-19 pandemic hit demand for its services.
At 08:19 a.m. ET, Dow E-minis were up 0.64% at 28,588 points and S&P 500 e-minis rose 0.77% to 3,488.75. Nasdaq 100 E-minis were up 110.5 points to 11,907 points.
Chipmaker Microchip Technology Inc gained about 3%following Morgan Stanley upgraded the stock to “overweight”.
American Equity Investment Life Holding Co dropped 9% as it said it had entered into a strategic partnership with Brookfield Asset Management Inc and rejected an unsolicited acquisition proposal from Athene Holding Ltd and Massachusetts Mutual Life Insurance Co.
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Source: News18