Wall Street Opens Mixed; Awaiting Stimulus Talks; Dow up 43 Pts

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Investing.com — U.S. stock markets opened mixed on Tuesday, pausing for breath after strong gains on Monday in anticipation of a deal on a fresh package of stimulus measures for the economy.

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi are due to resume negotiations this morning after an hour-long conversation by telephone on Monday. The two sides are still around $600 billion apart in terms of the package’s scale, due largely to Democratic pressure for an extension of the $600 weekly unemployment benefit check. 

Pelosi was quoted by newswires early on Tuesday as saying that talks were “progressing slowly”.

Speculation has risen that President Donald Trump will move further to get a deal to bolster re-election chances that seem to be slipping. A CNN poll published earlier Tuesday put his challenger Joe Biden nearly 16 points ahead of Trump after their first ‘debate’ last week.

By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was up 56 points, or 0.2%, at 28 205 points. The S&P 500 was down less than 0.1%, while the Nasdaq Composite, which posted the biggest gains on Monday, was down 0.2%.

In addition to news on the fiscal policy front, there is also a speech at 10:40 AM ET (1440 GMT) by Federal Reserve Chairman Jerome Powell at an economic conference, which will be scanned for hints as to how near (or far) any further help from the central bank could be.

A bit of mean-reversion was the order of the day on a light day for news flow. Zoom Video was down 1.6% while Apple (NASDAQ:AAPL) stock was down 1.5% amid reports that it is dropping Sonos (NASDAQ:SONO) products from its stores. Sonos stock was down 4.1%.