Wall Street climbs at open as traders hope for stimulus

Democrats and Republicans in Washington are in the final two weeks of negotiations before the November 3 presidential election on new spending measures to boost the US economy after the coronavirus pandemic caused grievous damage earlier in the year.

US stocks rose in opening trading Monday the start of yet another week where traders will closely monitor prospects Congress will pass a new stimulus package for the economy.

About 20 minutes after the open, the benchmark Dow Jones Industrial Average was up 0.3 percent at 28 687.15.

The broad-based S&P 500 climbed to 0.5 percent to 3 500.48, while the tech-rich Nasdaq rose 0.8 percent to 11 763.78.

President Donald Trump’s administration has proposed a $1.8 trillion package, while Democrats in the House of Representatives have approved a $2.2 trillion measure.

However, Senate Majority Leader Mitch McConnell said again last week that he prefers a narrowly tailored measure – which Democrats have rejected – and signaled he would not support the Trump administration’s push for a massive package.

White House chief of staff Mark Meadows on Monday tried to downplay the Republican leader’s comments.

“If the speaker and the president can come together in a bipartisan deal, (McConnell will) bring it to the floor, it will get a vote… and hopefully we’ll get stimulus on the way to the American people,” Meadows told Fox News.

Stocks posted modest gains last week as the see-sawing stimulus talks rattled investors, but Charles Schwab investment bank said traders have not given up hope.

“Although fleeting, optimism appears to be remaining regarding a potential fiscal relief package breakthrough as talks continue but a deal remains elusive,” Schwab wrote in an analysis.

Oil giant ConocoPhillips was up 0.7 percent after announcing before the open it would acquire shale oil rival Concho Resources in a transaction valued at $9.7 billion.

Concho’s stock was trading 1.0 percent higher.