Optimism grows over stimulus deal as talks continue

Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Jessica Smith discuss updates on the stimulus talks.

Video Transcript

ALEXIS CHRISTOPHOROUS: There are new signs of optimism this morning in the talks for a big stimulus deal. The White House says they have agreed to finalize a deal with Democrats by the end of this week, which could set up a vote for early next week. Even senate GOP Leader Mitch McConnell has said he will go along with whatever they decide.

Now, that optimism about a possible stimulus deal helping to buttress the markets here in the early going. Taking a look at stock futures, Dow futures up nearly 200 points now. Things a little more muted in the broader market. NASDAQ futures up just 4. We have S&P futures up 16 points. Our DC correspondent Jessica Smith is here with the very latest. Jess, what can you tell us about this possible deal in Congress?

JESSICA SMITH: Well, we're not anywhere close to a deal at this point. They have agreed to try and reach a deal by the end of the week. So we'll see if this actually comes through. We know that they had hoped to strike a deal a couple of weeks ago, But they are saying that they have agreed at least on a timeline to try and get this done. So that's more than what we've seen in the past.

There is still a lot to work out. I wanted to read you this quote from Democratic Leader Chuck Schumer. He says, "in my view, the fundamental disagreement is the scope and depth of the problem and its solution. They, Republicans, are still wrapped in this idea that the government shouldn't do much and leave it to the private sector, and it just doesn't work." So that still sounds like a pretty big problem to me. They are set to meet again today, so we'll see if they can make any more progress as they continue negotiations.

ALEXIS CHRISTOPHOROUS: Now, I know President Trump was talking about possibly taking executive orders here for things like cutting the payroll tax, evictions. Is that still on the table?

JESSICA SMITH: Well, President Trump said yesterday he was still considering it. He told reporters if Congress couldn't get something done, that is something that he might do. He again said this morning that he could do this on the payroll tax cut. And we know that's not very popular on Capitol Hill. Even if there is a deal, it's likely not going to include a payroll tax cut. So we'll see if President Trump would move to try and do that on his own. But you can expect probably a lot of backlash on that decision.

ALEXIS CHRISTOPHOROUS: Just before we let you go, any sign that they're coming together on a deal for those expanded unemployment benefits? There was talk that they would expand them, but it wouldn't be the $600 a week. Where do things stand there?

JESSICA SMITH: Well, the administration says that they made an offer on those benefits, the enhanced benefits. Politico reports that Mnuchin, Treasury Secretary Mnuchin, offered $400 a week. But we're still waiting to see if there's any kind of agreement on that. We know that Democratic lawmakers are not excited. They are not onboard with cutting this at all. So we'll see if they give at all there. But at this point, there's no agreement on that, no.

ALEXIS CHRISTOPHOROUS: All right, Jess. Thanks so much.