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Dow closes lower on stimulus stalemate, S&P, Nasdaq advance

·1-min read

Wall Street traders came to differing conclusions regarding the ongoing federal stimulus stalemate on Friday, with the Dow closing slightly lower but the S&P 500 and Nasdaq making gains.

At the close, the benchmark Dow Jones Industrial Average was 0.1 percent lower at 28,335.57.

The broad-based S&P 500 rose 0.3 percent to 3,465.39 while the tech-rich Nasdaq Composite Index closed 0.4 percent higher at 11,548.28.

Traders have been closely following negotiations in Washington over passing a massive new stimulus bill to revive the world's largest economy and Friday did not bring the breakthrough they'd hoped for.

Treasury Secretary Steven Mnuchin said "significant differences" remain with Democratic House Speaker Nancy Pelosi, saying "if she wants to compromise, there will be a deal."

Traders are also digesting a surge in coronavirus cases across the United States, with the expectation being that businesses won't shut down again, said Karl Haeling of LBBW.

"Today is nothing more than a consolidation day," Haeling said.

"The market really wants to see a bill before the election," but considering it didn't drop considerably, Haeling said it's possible "the market is looking through the next few months and thinking that there will be another stimulus package at least by March."

Shares of Gilead Sciences climbed 0.2 percent after the US Food and Drug Administration gave full approval to its antiviral drug remdesivir as a treatment for patients hospitalized with Covid-19.

Dow member Intel closed 10.6 percent lower and American Express fell 3.6 percent on disappointing earnings.

Toymaker Mattel jumped 9.6 percent after reporting a profit boosted by sales of its popular Barbie dolls.