Wall Street Close: A shaky start to the week, stimulus hopes keep the bid going

Investors were enthused that there re ongoing Congressional talks over putting together another coronavirus stimulus package. 

US data was plentiful as well, and the mix of politics and assessments of the US economy made for a turbulent session for the first day of the new month and quarter.

US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin remained far from agreement on key areas. Pelosi described as differences over dollars and values.

The Congressional Democrats led by Pelosi have proposed a $2.2 trillion package and the House is scheduled to start debates in current trade and a vote on the partisan bill will take place for Thursday evening.

Meanwhile, the Dow Jones Industrial Average added 35.2 points, or 0.13%, to 27,816.9, the S&P 500 gained 17.8 points, or 0.53%, to 3,380.8 and the Nasdaq Composite IXIC put up 159.00 points, or 1.42%, to 11,326.51.

Of the S&P's 11 major sectors, there was a 1.5% gain with Amazon.com AMZN that added the biggest boost while the best percentage gainer in the sector was another online retailer, Etsy ETSY, which climbed more than 8%.  

US data was mixed

Initial claims for Pandemic Unemployment Assistance lifted 34k last week, but the weekly numbers are worsening. 

837k people made an initial claim for the regular benefit.

The ISM manufacturing index dropped to 55.4 pts from 56.0 surprising the market, which expected a lift. 

The core PCE deflator for the US rose 0.3% in August, MoM, as expected. The July data was revised up which helped pushed annual core deflator rate to 1.6%.