S&P 500 and Nasdaq rise | Congress moving closer toward deal | Fed will keep buying bonds

WED, DEC 16, 2020

EVENING BRIEF

AS OF WED, DEC 16, 2020 • 04:27 ET

DJIA		30154.54
		-0.15%	-44.77

S&P 500		3701.17
		+0.18%	+6.55

NASDAQ		12658.19
		+0.50%	+63.13

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	127.81	-0.07	-0.05%
MSFT	219.28	+5.15	+2.41%
INTC	51.12	+0.46	+0.90%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	127.81	-0.07	-0.05%
AAL	16.86	-0.15	-0.88%
GE	10.93	-0.18	-1.62%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	127.81	-0.07	-0.05%
TSLA	622.77	-10.48	-1.66%
MSFT	219.28	+5.15	+2.41%

EDITOR'S NOTE

The combination of apparent progress in U.S. fiscal coronavirus stimulus talks and the Federal Reserve renewing its pledge for economic support lifted two of the three major indexes on Wednesday.

The S&P 500 rose 0.2%. The Nasdaq Composite advanced 0.5%, posting intraday and closing all-time highs. The Dow Jones Industrial Average lagged, however, falling 44 points.

Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to individuals. Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., both said late Tuesday that they hope to reach a deal "soon."

Meanwhile, the Fed said it will buy at least $120 billion of bonds each month "until substantial further progress has been made toward the Committee's maximum employment and price stability goals."

The major averages hit their session highs after the Fed's announcement was released.

However, a steeper-than-expected decline in U.S. retail sales capped Wednesday's move higher.

The Commerce Department said retail sales fell by 1.1% in November. Economists polled by Dow Jones expected a drop of 0.3%.

"It's truly the darkest before dawn with a brutal retail sales reading like this," said Mike Loewengart, managing director of investment strategy at E-Trade. "Worse-than-expected numbers paint a picture of the hard-hit consumer as we capture holiday shopping in November. Sustained spending remains key for the recovery, and this pullback only underscores the critical need for stimulus for consumers and businesses alike."

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