By Chris Ciaccia FOXBusiness
September will be a losing month for US stocks.
Stocks popped at the open, reversing morning losses after Treasury Secretary Steven Mnuchin signaled a stimulus deal could be announced today after much negotiating with House Speaker Nancy Pelosi.
|I:DJI||DOW JONES AVERAGES||27878.31||+425.65||+1.55%|
|I:COMP||NASDAQ COMPOSITE INDEX||11231.592497||+146.34||+1.32%|
All three of the major averages rallied with the Dow Jones Industrial Average locking in a gain of nearly 400 points or 1.3%, while the S&P 500 and Nasdaq Composite rose over 1% each.
Also driving the move a major jump in pending home sales which rose a record 8.8% in August.
The combination, along with a better-than-expected ADP jobs report, helped temper investor concerns after the nasty presidential debate between President Donald Trump and Democratic nominee Joe Biden. Biden and Trump clashed on everything from the coronavirus pandemic to the economy to racial injustice.
GDP Drops, Jobs Rebounding
The ADP Employment Change showed 749,000 jobs were added in September, stronger than expected, as the economy continues to recover from the ongoing coronavirus pandemic.
This helped offset GDP for the second quarter which dropped 31.4%, in-line with an expected decline of 31.7% tied to COVID-19.
|DIS||WALT DISNEY COMPANY||124.31||-1.05||-0.84%|
On the corporate front, The Walt Disney Company announced it would be laying off 28,000 employees, as its parks business in the U.S. has struggled, despite reopening in California and Florida.
DISNEYS HAWAII RESORT TO START PHASED REOPENING IN NOVEMBER
Disney’s Chairman of Parks, Experiences and Products, Josh D’Amaro, announced the layoffs of “castmembers” Tuesday evening, citing “limited capacity due to physical distancing requirements” and the uncertainty of the duration of the pandemic. As such, D’Amaro said the company has made “the very difficult decision to begin the process of reducing our workforce.”
|GM||GENERAL MOTORS COMPANY||29.50||+0.77||+2.66%|
General Motors may decide to extend talks with Nikola Corporation on its $2 billion deal, CNBC reported.
The deal, which had been expected to close on Wednesday, is under scrutiny after short-seller Hindenburg Research said Nikola made false claims about its technology for its electric trucks. The company’s former chairman, Trevor Milton, also recently resigned, amid allegations of sexual harassment.
|PENN||PENN NATIONAL GAMING||72.97||+3.56||+5.13%|
Caesars Entertainment announced it would buy British-gambling company William Hill for 272 pence per share, valuing William Hill at $3.73 billion, or 2.9 billion British pounds. The deal puts other gaming stocks in focus.
Apple Inc. awarded CEO Tim Cook his first major stock grant since 2011, giving Cook an additional 333,987 restricted stock units that will vest in thirds on an annual basis starting in 2023, according to an SEC filing Tuesday.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity,” Apple’s Board of Directors told FOX Business in a statement late Tuesday. “For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward.”
APPLE BECOMES FIRST U.S. COMPANY WORTH $2 TRILLION
Crude oil inventories also showed a healthy draw down signaling demand is picking up.
|USO||UNITED STATES OIL FUND L.P.||28.16||+0.47||+1.70%|
The yield on the 10-Year Treasury dipped to 0.646%, the sixth drop in the past eight trading days.
European markets were lower in Wednesday trading, with the FTSE 100 and DAX falling 0.2% and 0.5%, respectively.
Fox News’ Marisa Schultz and FOX Business Lucas Manfredi contributed to this story.
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