Wall Street starts on a mixed note

Wall Street starts on a mixed note

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As expected, the main indices on Wall Street opened on a mixed note on Wednesday morning amid lingering uncertainty over US stimulus negotiations, Brexit, and rising coronavirus cases in the US. Shortly after the opening bell, the Dow Jones Industrial Average was up 0.4% at 30,295, while the S&P 500 rose 0.16% to 3,708. Meanwhile, the Nasdaq was the laggard, down 0.05% at 12,575. Investors mostly seem to be focusing on hopes that a US stimulus deal will be secured soon, with a cliff edge looming at the end of the year as multiple Federal support schemes designed to help unemployed Americans and protect renters from eviction due to expire at the start of next year. Traders may also be keeping an eye on the Brexit negotiations between the UK and the EU, the outcome of which could cause some fireworks for currency traders and possibly see the pound shift against the greenback. 7.50am: Wall Street to see mixed open US indices are expected to see a lukewarm open, with futures pointing at the Dow Jones Industrial Average and S&P500 barely in the green alongside a dip in the red for the Nasdaq. US lawmakers are expected to postpone a December 11 deadline by a week so they can take more time to negotiate a fresh stimulus package, although if things are still bogged down come January the economic circumstances could deteriorate sharply if Congress doesn't act fast. "Lawmakers in Congress aren't exactly on the same page, with regards to the kind of stimulus that's needed beyond the end of the year, but one thing they're clearly in agreement on is the essential need for an extension of relief. And one that's tied to funding for government", said Craig Erlam at OANDA. "The 11 December deadline has just come a little soon, which is why lawmakers will today approve a one week extension in order to give them some extra time to agree on relief measures. For the first time in a while, I'm actually optimistic on a deal before the end of the year now, albeit one that will likely require fresh talks in the new year. The important thing is that it averts the damaging cliff-edge scenario at the end of the year", he added. Markets are treading water also as they await a potential decision on Brexit after tonight’s meeting between Boris Johnson and Ursula Von Leyen. “Traders remain optimistic though, although volatility has certainly picked up this last week,” Erlam said. “The nerves are creeping in and that may ramp up dramatically if talks don't go well this evening”, he added. Five things to watch for on Wednesday: There will be a few big names in the earnings diary on Wednesday, with investors likely to be interested in fourth quarter figures from software giant Adobe Inc (NASDAQ:ADBE) Also in the calendar are first quarter numbers from food and snack firm Campbell Soup Co (NYSE:CPB) as well as the annual general meeting of remote spin class specialist Peloton Interactive Inc (NASDAQ:PTON) Meanwhile, share price reaction from cybersecurity firm FireEye Inc (NASDAQ:FEYE) may draw focus after the company revealed, somewhat embarrassingly, that it has been a victim of a cyberattack Ongoing negotiations around a stimulus package will also attract attention if any developments emerge from Washington DC Crunch Brexit talks between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen could also provide some movement, particularly for the pound on currency markets

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