(RTTNews) – Stocks are likely to move to the upside in early trading on Monday, adding to the strong gains posted last week. The major index futures are pointing to a higher open for the markets, although the Dow futures are up a relatively modest 71 points compared to more than 220-point jump by the Nasdaq futures.

The markets may 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

In its weekly release, Baker Hughes Company BKR reported an increase in the U.S. rig count.

More on the Rig Count

Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry.

A change in the Houston-based oilfield service player’s rotary rig count affects demand for energy services like drilling, completion and production, provided by the likes of Halliburton Company HAL, Schlumberger Limited SLB and Transocean Ltd. RIG.

Details

Total US Rig Count Increases: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 266 in the week through Oct 2 versus the prior-week count of 261. Thus, the tally increased for three weeks in a row. The current national rig count is, however, below the year-ago level’s 855.

The number of onshore rigs in the week ending Oct 2 totaled 251 compared with the prior-week count of 246. Notably, the count of rigs operating in inland waters was one, same as the prior-week tally. Moreover, in the offshore resources, 14 rigs were operating, also flat with the prior-week count.

US Adds 6 Oil Rigs: Oil rig count was 189 in the week through Oct 2, compared with 183 in the week ended Sep 25. Investors should also note that the current tally of oil rigs, far from the peak of 1,609 attained in October 2014, is below the year-ago 710.

Natural Gas Rig Count Falls in US: The natural gas rig count of 74 was lower than the prior-week count of 75. Moreover, the count of rigs exploring the commodity is below the prior-year week’s 144. Importantly, per the latest report, the number of natural gas-directed rigs is 95.4% below the all-time high

(Bloomberg) — U.S. stocks climbed to a month-week high on optimism over economic stimulus and that President Donald Trump will leave the hospital later Monday. Treasury yields jumped and the dollar weakened.

The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all rebounded from Friday’s swoon in the wake of Trump’s coronavirus disclosure. Regeneron Pharmaceuticals Inc. rallied after Trump was given an experimental antibody treatment made by the drugmaker. Energy, health care and technology shares were the biggest gainers in the S&P.

“Fiscal stimulus continues to be a wild card for the market, and uncertainty around the health of the president certainly looms large,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “So while there’s a lot of noise out there, experienced traders may find bullish opportunities.”



timeline: BlackRock's TLT had its best week of inflows on record


© Bloomberg
BlackRock’s TLT had its best week of inflows on record

Trump said on Twitter that he’ll leave Walter Reed hospital Monday evening after being treated since Friday for Covid-19. With less than a month until Election Day, Trump’s hospitalization has jolted the presidential campaign, forcing him to scrap rallies and other events as polls show him trailing Joe Biden nationally and in swing states.

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On the stimulus front, Trump tweeted from the hospital that a deal needs to get done. House Speaker Nancy Pelosi was optimistic on Friday that a bipartisan stimulus bill can be done.

“Absent of vaccine breakthrough, we’re in an economy that is modestly recovering from the lows of March and April, but it can only go so far,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management’s Ascent Private Wealth Group. “Areas of the economy that are susceptible are still feeling the pain. That’s why we need so much stimulus from the Federal Reserve and Congress.”

Traders

MUTUAL FUNDS WEEKLY



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  • As of Tuesday, roughly 3.6 million homeowners remain in pandemic-related forbearance plans. That’s 6.8% of all active mortgages, representing $751 billion in unpaid principal.
  •  The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year.



a car parked in front of a house: Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that's proving a key source of strength for the economic recovery.


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Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that’s proving a key source of strength for the economic recovery.

The number of mortgages in active pandemic-related bailout plans rose by 21,000 in the past week after declining for six straight weeks, according to Black Knight, a mortgage technology and analytics firm. 

The increase was not across all mortgage types but among bank-held and private-labeled security loans (28,000), and, to a lesser extent, among FHA/VA loans (2,000). Those increases were offset by a decline of 9,000 Fannie Mae and Freddie Mac loans in forbearance.

The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year. Forbearance is granted in three-month terms, and so far more than 75% of borrowers in bailouts are on extensions since March.

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“As of the 29th [of September], nearly 800,000 forbearance plans were still set to expire in September, down from 2 million at the start of