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Dow rises 161 points as economic stimulus talks show progress


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US stocks moved higher Friday on continued hope that fiscal stimulus negotiations would lead to a deal prior to the election.
House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin continued negotiations today as the two tried to find middle ground on the size and scope of a new deal.
The resumption in stimulus talks comes after President Donald Trump reversed his view of no deal earlier this week and instead said he now favors a large stimulus deal.
Trump tweeted on Friday, “Covid Relief Negotiations are moving along. Go Big!” 
Watch major indexes update live here.

US stocks moved higher on Friday as negotiations continued on another round of fiscal stimulus from Congress to combat the economic decline caused by COVID-19.

House Speaker Nancy Pelosi and Secretary Steve Mnuchin have been rushing to make a deal prior to the upcoming November election, but those chances were thwarted earlier this week after President Donald Trump tweeted that negotiations were over.

Fast forward to today and the talks are back on. 

Trump tweeted on Friday, “Covid Relief Negotiations are moving along. Go Big!”

Here’s where US indexes stood at the 4 p.m. ET market close on Friday:

S&P 500: 3,477.13, up 0.9%

Dow Jones industrial average: 28,586.90, up 0.6% (161 points)

Nasdaq composite: 11,579.94, up 1.4%

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GOP Senate Leader Mitch McConnel said this morning that it was unlikely a stimulus deal would be passed prior to the election.

But shortly after McConnel spoke, economic advisor Larry Kudlow said that Trump raised his offer on a stimulus dead to $1.8 trillion from $1.6 trillion. The Democrats have been asking for $2.2 trillion. 

In a radio interview with Rush Limbaugh on Friday, Trump said, “I would like to see a bigger stimulus package, frankly, than either the Democrats or the Republicans are offering….I’d like to see a bigger package…I’d like to see money going to people.”

Specific aid in a new round of stimulus would likely include another round of stimulus checks to Americans, aid to the airline industry, and an extension of the PPP program, among other things.

JPMorgan said on Friday that it appears a deal is inching closer to reality now that President Trump has fully committed to getting one done prior to pulling out of negotiations earlier this week.

But the Senate remains a roadblock, as they have not been seen as active participants in the negotiation talks.

The takeaway from today’s stimulus headlines “should be seen mostly incremental progress that keeps a stimulus deal hope alive, but ultimately still pretty unlikely before elections,” JPMorgan said.

Read more: Buy these 7 stocks poised to profit from the boom in packaged-food sales as COVID-19 prompts more Americans to cook at home, Stifel says.

Shares of Xilinx soared as much as 17% on Friday after reports surfaced that AMD is in advanced talks to …read more

Source:: Business Insider

      

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