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Coca-Cola, IBM power Dow higher as Wall Street watches stimulus talks

Coca-Cola, IBM power Dow higher as Wall Street watches stimulus talks
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Stocks opened with gains Tuesday as the details of the next coronavirus stimulus package came into view and silver linings emerged from another round of corporate earnings reports.

The Dow Jones Industrial Average rose roughly 300 points Tuesday, powered largely by rallies in shares of Coca-Cola and IBM. 

While Coca-Cola reported a 33 percent decline in profits in the second quarter of 2020, the company voiced optimism that demand would recover through the second half of the year. IBM’s second quarter earnings beat analyst expectations, pushing shares roughly 3 percent higher.

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The S&P 500 index opened with a gain of roughly 0.5 percent, while the Nasdaq ticked higher by 0.25 percent before falling into a loss of 0.2 percent.

JJ Kinahan, chief market strategist at TD Ameritrade, also attributed Tuesday's gains to a 750 billion Euro stimulus deal reached by the European Union. 

"This kind of spending seems likely to give suffering economies there a jolt even as investors wait to see if the U.S. can come up with a new fiscal package," Kinahan wrote.

Investors are also closely watching Congress as lawmakers and Trump administration officials begin crafting another round of coronavirus response and economic rescue funding. 

Administration officials are set to brief Senate Republicans on Tuesday about the contours of the first offering from Republicans, which is likely to cost roughly $1 trillion. House Speaker Nancy PelosiNancy PelosiWoman accused of trying to sell Pelosi laptop to Russians arrested Conspiracies? Let's investigate this one FBI investigating whether woman took Pelosi laptop, tried to sell it to Russians MORE (D-Calif.) and Senate Minority Leader Charles SchumerChuck SchumerCowboys for Trump founder arrested following Capitol riot Graham pushes Schumer for vote to dismiss impeachment article Biden and the new Congress must protect Americans from utility shutoffs MORE (D-N.Y.) are also set to meet Tuesday afternoon with Treasury Secretary Steven MnuchinSteven MnuchinTreasury imposes additional sanctions on Cuba over allegations of 'serious human rights abuse' Treasury Department sanctions inner circle of Russian agent Derkach for election interference Sanders defends push to impeach Trump: Insurrection won't be tolerated MORE and White House chief of staff Mark MeadowsMark MeadowsAuthor: Meadows is history's worst White House chief of staff Agency official says Capitol riot hit close to home for former Transportation secretary Chao Republicans wrestle over removing Trump MORE.

There are still substantial disagreements between the White House and Senate GOP over funding for coronavirus testing and a payroll-tax cut favored by President TrumpDonald TrumpGiuliani used provisional ballot to vote in 2020 election, same method he disparaged in fighting to overturn results Trump gets lowest job approval rating in final days as president Fox News' DC managing editor Bill Sammon to retire MORE. Republicans and Democrats are also at odds over how to extend enhanced unemployment benefits, aid to struggling state and local governments and direct stimulus checks.