Stocks rose for a third straight session as investors wrapped the best weekly performance since the summer.
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Progress on stimulus talks was reinforced after President Trump “approved” a revised package to help the struggling U.S. economy.
STIMULUS HOPES DRIVE INVESTORS
Director of the United States National Economic Council Larry Kudlow told FOX Business that he met with Mnuchin and White House Chief of Staff Mark Meadows and the new package would be “relatively broad-based.”
The S&P 500 rose 0.88%, its best week since July, as consumer discretionary, staples and large-cap tech led the gains.
|XLY||CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF||153.39||+1.58||+1.04%|
|XLP||CONSUMER STAPLES SELECT SECTOR SPDR ETF||65.74||+0.51||+0.78%|
The Nasdaq Composite also posted the strongest week since July as Apple and chip stocks posted wins.
|I:COMP||NASDAQ COMPOSITE INDEX||11579.943624||+158.96||+1.39%|
And the Dow Jones Industrial Average, which is now positive for 2020, gained over 161 points or 0.57% with Disney and General Electric leading and AT&T lagging.
|I:DJI||DOW JONES AVERAGES||28586.9||+161.39||+0.57%|
|DIS||WALT DISNEY COMPANY||124.97||+1.85||+1.50%|
|GE||GENERAL ELECTRIC COMPANY||6.84||+0.19||+2.86%|
Treasury Secretary Steven Mnuchin and Speaker of the House Nancy Pelosi spoke late in the afternoon again according to her spokesperson.
Despite the positive sentiment, Senate Majority Leader Mitch McConnell said it was “unlikely” another bill would be passed before the November election. McConnell, however, did say that another stimulus bill was needed to help support the economy.
CHIP DEAL CHATTER
Intel competitor Advanced Micro Devices Inc. is in advanced talks to acquire rival Xilinx Inc. for more than $30 billion, according to The Wall Street Journal.
|AMD||ADVANCED MICRO DEVICES INC.||83.10||-3.41||-3.94%|
AMD shares have risen nearly 75% year-to-date.
Shares of semiconductor maker NXP Semiconductor Inc. were also rising after the company raised its outlook for the current quarter. It reported preliminary third-quarter revenue of $2.27 billion, compared to a previous outlook of $2 billion. Analysts had expected sales to come in at $2.01 billion.
|NXPI||NXP SEMICONDUCTORS N.V.||141.53||+6.70||+4.97%|
In other deal news, the London Stock Exchange Group PLC said it would sell its entire holding of Borsa Italiana to Euronext NV for $5.1 billion.
The economic calendar is light on Friday, as wholesale inventories for August will be the only piece of data released. Economists are expecting a rise of 1% for the month, up from a decline of 0.3% in the prior reading.
|GILD||GILEAD SCIENCES INC.||63.84||+0.52||+0.82%|
Gilead Sciences, Inc. which makes remdesvir, an experimental drug used to treat COVID-19, said on Friday it would have enough supply on hand to treat all hospitalized patients in the U.S.
Microsoft Corp. was getting attention after The Verge reported the tech giant would let its employees work from home permanently. That move follows other tech giants that have made the move, including Twitter Inc. and Square Inc.
|USO||UNITED STATES OIL FUND L.P.||28.70||-0.45||-1.54%|
|GLD||SPDR GOLD SHARES TRUST – EUR ACC||181.08||+3.23||+1.82%|
West Texas Intermediate crude oil declined on the day but gained over 9% for the week to $40.60 a barrel as Hurricane Delta barreling towards Louisiana disrupted output. While gold rose to the $1,919.50 level.