Stocks opened mixed on Wednesday after White House Chief of Staff Mark Meadows signaled to FOX Business a stimulus deal is near.
STIMULUS DEAL NEAR, 48 HRS POSSIBLE
“I can tell you the negotiations have entered a new phase which is more on the technical side of trying to get the language right if we can agree upon the numbers,” Meadows told Maria Bartiromo. “We’re still apart. Still a number of issues to work on, but the last 24 hours have moved the ball down the field.”
The Nasdaq Composite posted modest gains of 0.25%, while the S&P 500 and Dow Jones Industrial Average were little changed.
PELOSI, MNUCHIN STILL TALKING
Speaker of the House Nancy Pelosi and representatives from the White House said there was enough progress made late Tuesday to continue speaking. Pelosi had previously imposed a 48-hour deadline to reach a deal that expired on last night.
However, The Washington Post reported late Tuesday that Senate Maj. Leader Mitch McConnell has warned the White House that Democrats are not negotiating in good faith. McConnell, who is up for reelection, cautioned the Trump administration against making a deal before the election.
STOCKS GAIN AS STIMULUS DEAL LOOMS, ENERGY AND FINANCIALS LEAD
TECH IN SPOTLIGHT
Tech shares will be in the spotlight on Wednesday after Netflix Inc. reported third-quarter results that fell short of Wall Street expectations.
The streaming giant said in the first nine months of this year, it added 28.1 million paid subscriptions. In all of 2019, the service added 27.8 million. Shares were down 5%.
Verizon Communications boosted its outlook on Wednesday morning on strong wireless results giving shares a boost.
General Motors Co. shares were up another 2.3% following a strong day on Tuesday as investors reacted positively to the company’s Hummer EV, unveiled Tuesday night.
After the bell, electric vehicle manufacturer Tesla Inc. and semiconductor company Xilinx Inc. report after the market closes as does Chipotle Mexican Grill.
HOUSING, OIL, FED IN SPOTLIGHT
Traders will get an additional look at the U.S. housing market on Wednesday, as mortgage applications for the week ending Oct. 17 are due before the market opens.
The Energy Information Administration will release weekly crude supplies data at 10:30, while the Federal Reserve will release its Beige Book for September at 2 p.m.
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West Texas Intermediate crude oil moved down slightly to $41.08 a barrel, while gold rose to $1,921.20 an ounce.
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