Wall Street is outraged by Trump’s threat to veto the stimulus

Shares rose on Wednesday as investors turned away from President Donald Trump’s threat to veto the latest incentive bill and bet on an economic recovery from the global coronavirus crisis.

All three major indices were higher, with blue-chip Dow gains and small caps.

The economically vulnerable stocks, which were defeated by the mandate closure and which will benefit most from the economic recovery, outperformed.

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‘Many names that have fallen behind throughout the year because they were handicapped by COVID tend to work better because investors are focusing on reopening the economy,’ said Joseph Sroka, chief investment officer at NovaPoint, Atlanta. “As we get good news about vaccines, those names get a boost.”

The possibility of shutting down the government at the end of the year, not to mention a lack of new fiscal stimulus, raised its head after Trump threatened to veto a $ 2.3 billion funding package, which also includes a long-awaited 892 pandemic relief deal billions of dollars.

In a video posted on Twitter, Trump said the stimulus bill, agreed after months of bickering in Congress, is a “shame” and he wants “ridiculously low” payments of $ 600 for individuals to increase to $ 2,000.

Market analysts said they still believe the fiscal package will come soon, either during the time of Trump, a Republican or President-elect Joe Biden, a Democrat. Some investors might hope for even more help given Trump’s remarks, said Phil Orlando, chief stock market strategist at Federated Hermes.

‘The street has to think,‘ Okay, we’re going to get a bigger boost, ’he said. ‘Republicans have the president’s cover to sit down and agree on a bigger deal.’

However, Republicans from the House of Representatives said this afternoon that they would stop the president’s request for higher fees.

Meanwhile, mixed economic data showed a welcome drop in unemployment demands and a rise in new durable goods orders, but also a withdrawal in consumer spending, a drop in wages and a weakening sense of the holiday shopping season coming to an end amid renewed growth. pandemic.

But sluggish inflation data provided further assurance that the US Federal Reserve will maintain its flexible monetary policy until at least 2024.

Unofficially, the Dow Jones industry average rose 113.96 points, or 0.38 percent, to 30,129.47, the S&P 500 gained 2.72 points, or 0.07 percent, to 3,689.98, and the Nasdaq Composite fell by 36.80 points or 0.29 percent, to 12,771.11.

Drugmaker Pfizer Inc. has grown following an agreement with the United States to deliver an additional 100 million doses of its COVID-19 vaccine by July.

Merck & Co Inc. has agreed to deliver up to 100,000 doses of COVID-19 treatment to the U.S. government, increasing inventories.

Supernus Pharmaceuticals Inc rose after its experimental drug for attention deficit hyperactivity disorder met the main goal of a late-phase study in adults.

American Airlines Group and United Airlines Holdings have progressed after unveiling plans to return employees this month. The airline industry hopes to receive about $ 15 billion in payroll support as part of a package of pending fiscal relief.