Tech Stocks Helping Lead Continued Advance On Wall Street

wallstreet sept12 12oct20 lt

Extending the strong upward move seen over the past few sessions, stocks have moved mostly higher in morning trading on Monday. The continued advance has once again lifted the major averages to their best intraday levels in over a month.

In recent trading, the Dow and the S&P 500 have reached new highs for the session. The Dow is up 188.32 points or 0.7 percent at 28,775.22, the Nasdaq is up 168.88 points or 1.5 percent at 11,748.82 and the S&P 500 is up 33.95 points or 1 percent at 3,511.08.

Technology stocks have helped to lead the way higher, as reflected by the significant advance by the tech-heavy Nasdaq.

Apple (AAPL) is posting a standout gain, surging up by 3.3 percent, while Google parent Alphabet (GOOGL) and Facebook (FB) have also moved notably higher.

Shares of Twitter (TWTR) have also shown a strong move to the upside after Deutsche Bank upgraded its rating on the social media giant to Buy from Hold.

The markets also continue to benefit from optimism about a new stimulus bill even though House Speaker Nancy Pelosi said talks will "remain at an impasse" until "serious issues" with the Trump administration's latest proposal are resolved.

The White House has increased its offer to $1.8 billion in its latest proposal, but Pelosi still called the administration's proposed bill "grossly inadequate."

"The news is filled with the numbers in terms of dollars. The heart of the matter is: can we allow the virus to rage on and ignore science as the Administration proposes, or will they accept the scientific strategic plan in the Heroes Act to crush the virus," Pelosi said in a letter to her Democratic colleagues.

"We have other differences in terms of who benefits from the spending," she added. "But in terms of addressing testing, tracing and treatment, what the Trump Administration has offered is wholly insufficient."

Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows sent a letter to members of the House and Senate accusing Democrats of refusing to compromise on bipartisan legislation.

"It is not just about the top-line number but also about legislation that can be passed by both the House and the Senate and signed into law by President Trump to help the American people," Mnuchin and Meadows wrote.

Mnuchin and Meadows urged Congress to vote on a bill allowing the administration to spend unused Paycheck Protection Program funds while negotiations on a comprehensive package continue.

"The all-or-nothing approach is an unacceptable response to the American people," Mnuchin and Meadows wrote.

Retail stocks have shown a significant move to the upside in morning trading, driving the Dow Jones U.S. Retail Index up by 1.6 percent to its best intraday level in over a month.

Shares of Dillard's (DDS) are soaring after Berkshire Hathaway investment manager Ted Weschler disclosed a nearly 6 percent personal stake in the department store chain.

Brokerage, semiconductor and software stocks are also seeing some strength on the day, while oil service stocks are moving lower along with the price of crude oil.

With crude for November delivery tumbling $1.25 to $39.35 a barrel, the Philadelphia Oil Service Index is down by 1.4 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, although Japan's Nikkei 225 Index bucked the uptrend and dipped by 0.3 percent. China's Shanghai Composite Index spiked by 2.6 percent, while Australia's S&P/ASX 200 Index rose by 0.6 percent.

Most European stocks have also moved to the upside on the day, with the French CAC 40 Index and the German DAX Index climbing by 0.6 percent and 0.5 percent, respectively. However, the U.K.'s FTSE 100 Index has edged down by 0.1 percent.

Meanwhile, the bond markets are closed on the day due to the Columbus Day holiday. Treasuries saw considerable volatility last Friday before ending the session slightly higher.

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