Wall Street Opens Higher as Faith in Stimulus Persists; Dow up 130 Pts
By Geoffrey Smith
Investing.com - US stock markets opened higher on Friday on their way to their highest weekly closing price in over a month, in the continuing hope that the warring factions in Washington will put together a stimulus package before the November elections .
The amount of time such a package will have an impact on the economy or even consumer and business confidence before the vote goes quickly. This increases the pressure on the government disproportionately as polls show that the gap between President Donald Trump and his Democratic Party challenger Joe Biden is widening. Trump had abruptly broken off negotiations with the House Democrats earlier this week in order to step down within the next 48 hours.
The market shrugged off Newswires reports, quoting Senate Chairman Mitch McConnell as telling an incident in Kentucky that a deal was "unlikely in the next three weeks."
At 9:40 a.m. CET (1340 GMT), the Dow Jones Industrial Average rose 131 points, or 0.5%, to 28,547 points. The S&P 500 rose 0.6% and the Nasdaq Composite rose 0.8%.
The most prominent winner was chipmaker Xilinx (NASDAQ: XLNX), which was up 17% after the Wall Street Journal reported it was in advanced talks to get rid of rival Advanced Micro Devices (NASDAQ: AMD) as part of a Deals to be taken that would be worth over $ 1.30 billion. The high price drove AMD shares down 2.4%.
Another chipmaker stock, NXP Semiconductors (NASDAQ: NXPI), rose 4.6% after it was revealed that demand had recovered faster than expected as some preliminary third-quarter figures were released. NXP's forecast for Q3 revenue was roughly 13% above consensus forecasts.
Gilead (NASDAQ: GILD) was also a newcomer. The biotech rose after final data from a study on its remdesivir-covid treatment showed that the drug's recovery time was reduced by five days compared to patients given a placebo.
Data-transmission company Fastly (NYSE: FSLY), which counts TikTok and Spotify (NYSE: SPOT) among its largest customers, also renewed its seemingly unstoppable rally, rising another 6.9% to a new all-time high. It has increased fivefold since April, making it one of the biggest winners of a pandemic that has massively accelerated long-term trends towards greater cloud usage.
Among the losers, Exxon Mobil (NYSE: XOM) fell another 0.7%, despite speculation that it could soon become a target for activist investors. Exxon lost its crown as the most valuable oil and gas producer in the United States to Chevron (NYSE: CVX) earlier this week - for the first time since being made from Standard Oil.
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