Stimulus hopes lift Wall Street; Netflix slumps

Wall Street was totally captivated by ongoing economic stimulus talks in Washington on Tuesday.

House Speaker Nancy Pelosi once again expressed confidence Democrats could reach a deal with the White House that could get aid out by early next month.

Senate Majority Leader Mitch McConnell seemed to warm up to the idea that a stimulus agreement, bigger than what Republicans have lobbied for, could become a reality. Speaking to the press, McConnell said if a Presidentially-supported bill clears the House, at some point he'll bring it to the Senate floor.

The Dow rallied 113 points. The S&P 500 added 16 points...And for the first time in six sessions there was a green arrow next the Nasdaq. It was up 37 points.

Tech stocks were up despite Google getting sued in the government's biggest antitrust lawsuit in decades. In the suit, Google is accused of using its search engine dominance to cripple any competition. Google responded in a blogpost by calling the lawsuit "deeply flawed."

Shares of Google rose despite the lawsuit.

Jeff Tomasulo, CEO of Vespula Capital explains investor reaction this way:

"The market is basically saying we don't care. You know, when we see these things come out, if you look at history, obviously something's going to happen, right? Usually there is going to be a settlement. The Justice Department's going to, you know, have them do something. We saw that in Europe with the European Union. I guess those restrictions aren't good enough. If there is a better product out there, consumers are going to use the better product. Right now, the Google search engine is the better product."

A disappointment after the close from Netflix. The streaming video leader didn't add as many paid subscribers last quarter as it predicted. Revenues were also weaker than anticipated.

Outside of tech, Procter and Gamble raised its full-year sales and profit forecasts. The consumer products giant enjoyed a business boom last quarter as the health crisis kept most people close to home, leading to higher demand for cleaning supplies and a shift to P&G’s higher-end products.

Video Transcript

[BELL RINGING]

- Wall Street was totally captivated by ongoing economic stimulus talks in Washington on Tuesday. House Speaker Nancy Pelosi once again expressed confidence Democrats could reach a deal with the White House that could get aid out by early next month. Senate Majority Leader Mitch McConnell seemed to warm up to the idea that a stimulus agreement bigger than what Republicans have lobbied for could become a reality. Speaking to the press, McConnell said if a presidentially supported bill clears the House, at some point he'll bring it to the Senate floor.

The Dow rallied 113 points, the S&P 500 added 16 points, and for the first time in six sessions, there was a green arrow next to the NASDAQ-- it was up 37 points. Tech stocks rose, despite Google getting sued in the government's biggest antitrust lawsuit in decades. In the suit, Google is accused of using its search engine dominance to cripple any competition. Google responded in a blog post by calling the lawsuit, quote, "deeply flawed." Shares of Google rose despite the lawsuit.

- Jeff Tomasulo, CEO of Vespula Capital, explains investor reaction this way--

JEFF TOMASULO: The market is you know, basically saying, we don't care, you know? And when we see these things come out, if you look at history, obviously something's going to happen, right? There's usually going to be a settlement. They're-- the Justice Department is going to, you know, have them do something. We saw that in Europe with the European Union. I guess those restrictions aren't good enough. If there is a better product out there, consumers are going to use the better product. Right now, the Google search engine is the better product.

- A disappointment after the close from Netflix. The streaming video leader didn't add as many paid subscribers last quarter as it predicted. Revenues were also weaker than anticipated. Outside of tech, Procter & Gamble raised its full year sales and profit forecast. The consumer products giant enjoyed a boom last quarter, as the health crisis kept most people close to home, leading to higher demand for cleaning supplies and a shift to P&G's higher end products.