NEW YORK (dpa-AFX) – Wall Street expanded its profits in the course of trading on Tuesday and thus continued to recover from its weak start to the week. Recently, investors were increasingly hoping for an economic stimulus package before the upcoming presidential election. House Democratic spokeswoman Nancy Pelosi recently said the Democrats and the White House were nearing a successful conclusion of the negotiations; however, the Republican-controlled Senate is likely to continue to advocate a smaller deal. Meanwhile, the corona virus continues to rage in the United States.
The Dow Jones Industrial recently rose 1.22 percent to 28,540.74 points. At the beginning of the week, the US benchmark index slipped 1.4 percent into the red.
The market-wide S&P 500 gained 1.36 percent on Tuesday to 3473.52 points. The technology-heavy selection index Nasdaq 100 rose 1.34 percent to 11,790.19 points.
The deadline previously set by Pelosi for rapprochement with the US government is due to expire this Tuesday. “The math is simple: If they don’t agree today, the much-needed aid package will likely be delayed until after the elections,” commented analyst Ricardo Evangelista of ActivTrades.
The reporting season among the Dow stocks is picking up speed again after a break on Monday. At IBM, flourishing business with cloud services did not hide the fact that the IT veteran continued to let up in sales in the third quarter. Due to the continued increased uncertainty in times of pandemics, the group again did not provide an annual outlook. The papers sagged as the clear bottom in the Dow by 5.7 percent.
Things looked better at Procter & Gamble and Travelers, with increases of just under 1 and 5.3 percent for the respective papers. Thanks in part to the demand for hygiene products, Procter revenues rose in the first quarter of the financial year, and so the group increased its sales and profit targets for the full year.
The insurer Travelers convinced investors with a doubled quarterly profit, although this was also related to special charges in the same period of the previous year. In the third quarter, the group was even able to dissolve loss reserves from previous years, which cushioned the increased burdens from natural disasters./la/he
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