Stocks extend gains with stimulus prospects in focus

Stocks traded higher Friday morning as investors continued to mull chances of a virus-relief package amid mixed signals from officials as to what size of a proposal they might support.

The S&P 500, Dow and Nasdaq each closed at their highest levels in more than five weeks by the end of the trading day on Thursday. All three major indices were on track to rise for a third straight day, and post weekly gains of at least 2.7%, as of Thursday’s closing levels.

Traders have closely monitored developments out of Washington to weigh whether a comprehensive or partial stimulus package might emerge before Election Day on Nov. 3, with additional relief measures viewed as a key tenet in encouraging the recovery in the virus-stricken economy. The Department of Labor’s weekly report on new jobless claims Thursday morning showed a worse than expected 840,000 individuals filed for first-time unemployment insurance benefits last week, though continuing claims dipped back below 11 million for the first time since late March.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed further stimulus in an about 40-minute conversation Thursday afternoon, Pelosi’s spokesperson Drew Hammill said in a Twitter post.

Hammill reported that Mnuchin “made clear the President’s interest in reaching” an agreement on a comprehensive package, after Pelosi said earlier in the day that she would not support a standalone proposal aimed at providing aid only to airlines. However, the White House has offered mixed signals as to whether it would in fact support a broader legislative package, with Trump and White House spokespeople offering conflicting takes on their willingness to back a more comprehensive proposal over the past couple days.

“A compromise on a big stimulus package in Washington could potentially deliver another October surprise, but the odds are against it as Election Day approaches,” Jeffrey Buchbinder, LPL Financial Equity Strategist, said in a note. “The optics of getting nothing done aren’t great on either side, and there are a lot of close Senate races right now, suggesting there still may be a glimmer of hope for a deal by November 3.”

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9:32 a.m. ET: Stocks open higher, tracking toward weekly advances

Here were the main moves in markets, as of 9:34 a.m. ET:

• S&P 500 (^GSPC): +21.45 points (+0.62%) to 3,468.28

• Dow (^DJI): +156.61 points (+0.55%) to 28,582.12

• Nasdaq (^IXIC): +74.85 points (+0.66%) to 11,495.04

• Crude (CL=F): -$0.11 (-0.27%) to $41.08 a barrel

• Gold (GC=F): +$29.50 (+1.56%) to $1,924.60 per ounce

• 10-year Treasury (^TNX): +1.5 bps to yield 0.782%

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9:06 a.m. ET: Xilinx shares surge after reports AMD is eyeing a takeover

Advanced Micro Devices (AMD) is reportedly in advanced talks for a takeover of peer chipmaker Xilinx (XLNX) in a deal that could be worth $30 billion, according to the Wall Street Journal. The deal announcement could reportedly come as soon as next week. Shares of Xilinx surged more than 16%, while AMD fell about 3% in pre-market trading.

Xilinx, which makes programmable chips used in networks, autonomous vehicles and data centers, could help AMD push further into telecommunications industries, especially as carriers build out their forthcoming 5G networks. The company could also help position AMD as a more formidable competitor to Intel (INTC), which to now has had a major hold over the market for computer chips used in data centers.

Representatives from AMD and Xilinx did not immediately respond to a Yahoo Finance request for comment regarding the reported deal.

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7:17 a.m. ET Friday: Futures hold onto overnight gains

Here were the main moves in markets, as of 7:17 a.m. ET Friday:

• S&P 500 futures (ES=F): 3,451.25, up 13.75 points or 0.4%

• Dow futures (YM=F): 28,424.00, up 114 points or 0.4%

• Nasdaq futures (NQ=F): 11,573.5, up 34.5 points or 0.3%

• Crude (CL=F): -$0.33 (-0.8%) to $40.86 a barrel

• Gold (GC=F): +$26.80 (1.41%) to $1,921.90 per ounce

• 10-year Treasury (^TNX): +0.2 bps to yield 0.769%

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6:04 p.m. ET Thursday: Stock futures open higher as investors eye stimulus

Here were the main moves in equity markets, as of 6:04 p.m. ET:

• S&P 500 futures (ES=F): 3,450.00, up 12.5 points or 0.36%

• Dow futures (YM=F): 28,422.00, up 112 points or 0.4%

• Nasdaq futures (NQ=F): 11,573.25, up 34.25 points or 0.3%

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Traders wearing masks arrive before the opening bell at the New York Stock Exchange (NYSE) on May 26, 2020 on Wall Street in New York City. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)

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