Stocks rise after vaccine news, despite Trump surprise

Stock markets rose Wednesday morning as the federal government announced a deal with Pfizer that will deliver another 100 million doses of a coronavirus vaccine, brushing aside potentially worrisome news about President Trump’s objections to a $2.3 trillion relief and spending package approved by Congress.

But they gave up their main advances during the day, closing relatively flat

The Dow Jones Industrial Average closed up 114 points, or 0.4 percent, and the S&P 500 closed flat at a 2.75 point gain, or 0.1 percent. The NASDAQ fell 37 points, or 0.3 percent.

Trump’s complaints about the $900 billion COVID-19 deal and a $1.4 trillion spending measure suggests he could veto the package without changes by Congress. 

Trump said he wants to increase stimulus checks from $600 to $2,000, something supported by Democrats but opposed by many Republicans. 

Congress had wrangled over the deal for months, largely without input from Trump, before passing it late Monday night.

Trump did not explicitly threaten to veto the bill, but if he fails to sign it by Monday night, the government will shut down and emergency unemployment programs will expire, leaving millions of people with no income heading into the new year.

Democrats, who had been pushing for a larger stimulus package overall, quickly agreed to increase the payments, setting up a unanimous consent vote for Thursday, that will fall if a single member objects.

The move has put Senate Majority Leader Mitch McConnell (R-Ky.), who insisted the relief bill remain below $1 trillion, in a tough political position.

Meanwhile, new data from the Commerce Department found that both personal income and consumption fell in November, the latest indication of a slowing economic recovery.

Updated at 4:08 p.m.