- The Dow Jones Industrial Average rose by as much as 146 points Tuesday.
- Energy and materials companies were the stock markets biggest gainers.
- Democrats and Republicans appear to be making progress on a new Covid-19 stimulus bill.
The Dow and broader U.S. stock market traded higher on Tuesday, though gains were limited by earnings headwinds and ongoing negotiations over a Covid-19 relief bill.
Dow, S&P 500 Rally; Nasdaq Falls
The Dow Jones Industrial Average rose by as much as 146 points Tuesday before paring gains. The blue-chip index was last up 87 points or 0.3%. Shares of Dow Inc. (NYSE:DOW) and ExxonMobil Corp (NYSE:XOM) were the biggest gainers.
The Dow Jones Industrial Average is eyeing its third consecutive daily advance. | Chart: Yahoo Finance
The broad S&P 500 Index of large-cap stocks briefly traded above 3,300. It was last up 0.1%, with seven of 11 primary sectors reporting gains. Energy stocks rose more than 2% and the materials group climbed 1.2%.
Profit-taking in the technology sector weighed on the Nasdaq Composite Index, which flat-lined on Tuesday. The tech-heavy index is coming off a record-setting close.
New Stimulus Deal in the Works
Markets are cautiously upbeat about the prospect of a new stimulus deal that would extend benefits to Americans affected by the lockdown. Democrats and Republicans are under pressure to finalize a deal after the $600 CARES unemployment benefit ended July 31.
Although progress is being made, the two sides disagree on whether to slash the jobless supplement or provide aid directly to cash-strapped states. Several other funding issues are also being discussed.
Video: White House officials and Democrats are set to resume stimulus talks.
Congressional leaders are also at odds about the size of the stimulus package. House Speaker Nancy Pelosi told CNN that she wouldnt budge from a $3.4 trillion price tag. Meanwhile, the proposed Senate GOP plan is roughly $1 trillion.
Americas response to Covid-19 has been sporadic, disorganized, and wrought with political dissent. Several states have rolled back or paused their reopening plans despite President Trumps push to get the economy back on track.
The U.S. recorded 47,576 new virus cases on Tuesday, which is much lower than last months peak of nearly 75,000 in a single day.
Infections appear to be slowing, with the seven-day average showing signs of peaking. | Chart: CDC
The U.S. economy is coming off its worst quarter in modern history, with GDP contracting nearly 33% annually. Unemployment is also trending in the wrong direction, with jobless claims rising in back-to-back weeks.
Josiah Wilmoth edited this article for CCN.com. If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.
Last modified: August 4, 2020 5:21 PM UTC