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US STOCKS-Wall St set to open at fresh highs on fiscal aid relief, vaccine optimism

Published 12/29/2020, 10:01 PM
Updated 12/29/2020, 10:10 PM
© Reuters.

(For a Reuters live blog on U.S., UK and European stock
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* U.S. Senate to vote on $2,000 COVID-19 aid checks
* Disney rises on report of jump in app downloads
* Futures up: Dow 0.41%, S&P 0.38%, Nasdaq 0.44%

(Adds comment; updates share prices)
By Devik Jain and Supriya R
Dec 29 (Reuters) - Wall Street's main indexes were set to
open at fresh record highs on Tuesday as bets that fiscal aid
will speed up a vaccine-led recovery in the economy boosted
sentiment in the final days of the year.
After U.S. President Donald Trump signed a long-awaited $2.3
trillion fiscal bill, restoring jobless benefits and averting a
federal government shutdown, the three main indexes closed at
all-time highs on Monday, led by pandemic-battered stocks.
A proposal to increase the COVID-19 payment checks to $2,000
from $600 is before the Republican-controlled Senate, where it
faces a much tougher path for approval. The Democratic-led U.S.
House of Representatives had approved the proposal on Monday.
Meanwhile, more than 2 million Americans have been
inoculated, helping investors overlook a surge in infections
that topped 19 million, with California, a major U.S. virus hot
spot, likely to extend strict stay-at-home orders. "The market is seeing the additional stimulus as a way to
get through at least the short term with money being put into
the hands of individuals," said Robert Pavlik, senior portfolio
manager at Dakota Wealth in Fairfield, Connecticut.
"The focus is that people are going to probably most likely
spend that (money), which would help the economy progress a
little bit further."
Unprecedented monetary as well as fiscal stimulus and
positive vaccine data have helped the S&P 500 .SPX recover
from a virus-led crash in March.
The benchmark index is looking at its best fourth-quarter
performance since 2011 as investors returned to
economically-sensitive stocks from the so called 'stay-at-home'
plays on hopes of economic recovery.
At 08:33 a.m. ET, Dow E-minis 1YMcv1 were up 125 points,
or 0.41%, S&P 500 E-minis EScv1 were up 14 points, or 0.38%.
Nasdaq 100 E-minis NQcv1 were up 56.25 points, or 0.44%.
Trading volumes is expected to be thin in a historically
strong final week for equities, with worries over a mutating
coronavirus strain and upcoming U.S. Senate runoffs in Georgia
posing as short-term concerns.
Shares of planemaker Boeing Co BA.N added 1.3% in
pre-market trade as American Airlines AAL.O was set to restart
U.S. 737 MAX commercial flights on Tuesday morning. Cruise operators Royal Caribbean Cruises RCL.N , Norwegian
Cruise Line Holdings NCLH.N and Carnival Corp CCL.N rose
between 1.3% and 2%, while stocks of major airline operators
rose between 0.7% and 1.3%, with American Airlines AAL.O
leading gains on hopes of a gradual recovery in travel demand.
Walt Disney Co DIS.N gained 0.8% after a report that said
Disney+ streaming service saw a jump in its mobile app downloads
over the Christmas holiday.

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