US Stocks Creep Higher 10/21 09:14
Stocks are drifting higher on Wall Street Wednesday as negotiations continue
in Washington on more aid for the economy, though prospects remain cloudy that
anything can happen soon.
NEW YORK (AP) -- Stocks are drifting higher on Wall Street Wednesday as
negotiations continue in Washington on more aid for the economy, though
prospects remain cloudy that anything can happen soon.
The S&P 500 was up 0.4% after swinging between very small gains and losses
in early trading. The Dow Jones Industrial Average was up 65 points, or 0.2%,
at 28,373, as of 9:44 a.m. Eastern time, and the Nasdaq composite was 0.6%
Netflix fell 3.9% for one of the largest losses in the S&P 500 after it said
growth in its subscriber rolls slumped by more during the summer than it had
forecast. It also reported a weaker quarterly profit than analysts expected,
following a surge earlier this year when people were yearning for things to
watch amid coronavirus-caused lockdowns.
It's a rare disappointing report in what's so far been a much better
earnings season than Wall Street girded for. Roughly one in six of the
companies in the S&P 500 index has reported its results for the
July-through-September quarter, and most have topped the low expectations
analysts had set.
S&P 500 companies are on track to report a decline of a little less than 18%
in earnings per share for the quarter from a year ago, which is not as bad as
the 21% drop that analysts were forecasting at the end of the quarter,
according to FactSet.
Much of Wall Street's focus has been on Washington, though, where White
House officials and Democrats are negotiating on another round of support to
prop up the still-struggling economy.
The two sides have been making progress, House Speaker Nancy Pelosi told her
Democratic colleagues in a letter late Tuesday. She said she hopes discussions
will continue, past a self-imposed deadline of Tuesday.
Markets have been swinging recently with the perceived prospects of such
stimulus. Investors have been clamoring for it since the summer, when extra
benefits for laid-off workers and other support provided by the last round of
aid approved by Congress expired.
But even if leaders from the White House and House of Representatives can
reach a compromise soon, its fate looks unclear on Capitol Hill due to its
growing price tag. Senate Majority Leader Mitch McConnell told fellow
Republicans that he has warned the White House not to divide the party by
sealing a relief deal before the election that could cost $2 trillion.
Regardless of the opposition, Jeffrey Halley of Oanda said, "the one lesson
we can take is that the U.S. fiscal stimulus package remains the only thing
financial markets are concentrating on, to the exclusion of everything else."
The yield on the 10-year Treasury held steady at 0.81% after rising as high
as 0.83% earlier Wednesday. It's been generally climbing since dropping close
to 0.60% early last month.
In London, the FTSE 100 index sank 1.4% after data showed government
borrowing rose to the highest level on record in the first half of the
financial year as tax revenue fell and authorities spent billions of pounds to
prop up an economy ravaged by the coronavirus pandemic.
France's CAC 40 fell 1%, and Germany's DAX lost 0.9%.
In Asia, Japan's Nikkei 225 gained 0.3%, South Korea's Kospi added 0.5% and
Hong Kong's Hang Seng jumped 0.8%. Stocks in Shanghai slipped 0.1%.