By Yasin Ebrahim
Investing.com – The Dow rose Tuesday led by energy and financials as investors weighed up the latest progress on stimulus with just hours to go until the deadline for lawmakers to reach a deal.
The Dow Jones Industrial Average rose 0.40%, or 113 points. The S&P; 500 was up 0.47%, while the Nasdaq Composite added 0.33%.
Pelosi suggested progress had been made with the White House on recent stimulus talks and she was hopeful a deal could be brokered by the end of the day. The house speaker conceded, however, that state and local money along with business liability remained sticking points. Senate Republican majority leader Mitch McConnell reportedly advised the White House to ditch a deal claiming that Pelosi isn't negotiating in good faith.
Both sides resumed talks at 3PM ET today, after negotiations a day earlier helped chip away at differences.
The remarks firmed up expectations a deal could be in the offing after White House economic advisor Larry Kudlow signaled uncertainty.
Stocks tied to the economy like industrials, energy and financials racked up gains intraday.
Financials got a boost from rising banking stocks, with Goldman Sachs (NYSE:GS) in the spotlight, up more than 1%, after the latter was reported to have reached a deal with the U.S. Department of Justice to pay over $2 billion for its role in the 1MDB scandal.
JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) ended in the green.
In tech, meanwhile, further signs of a government crackdown on the monopoly power of large cap tech did little to sour investor sentiment on the sector.
The U.S. government filed an antitrust lawsuit against Google on allegations it had violated competition law to preserve its monopoly over internet searches and online advertising.
Google-parent Alphabet (NASDAQ:GOOGL and Apple (NASDAQ:AAPL) ended up more than 1%, while Microsoft (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN) were modestly higher. Facebook (NASDAQ:FB) rose 2%.
Elsewhere in tech, International Business Machines (NYSE:IBM) fell 6% after reporting a third straight quarterly decline in revenue and keeping its guidance sidelined amid uncertainty from the ongoing pandemic.
Procter&Gamble (NYSE:PG) ended just above the flat zone after raising its guidance and reporting quarterly results that topped Wall Street estimates in the wake of a pandemic-led boost to demand for its household products.
In other news, cash-strapped move chain AMC Entertainment (NYSE:AMC) slumped 13% after warning of possible bankruptcy as it continues to seek additional liquidity to plug the financial hole as a result of the pandemic.
Disney's flagship theme park Disneyland and Universal Studios Hollywood will have to wait until their counties reach the least restrictive yellow tier to reopen, under the California's new guidelines released Tuesday.
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