By Kim Khan
Investing.com - Stocks continued to pare early gains in morning trading Tuesday as it became clearer that a U.S. fiscal stimulus package may still take some time to put together.
The S&P 500 remained up 1.8%, while the Nasdaq Composite was up 2%. The Dow Jones Industrial Average gained 1.2%, or 280 points. Among individual stocks, Delta Air Lines (NYSE:DAL) reversed early gains to be down 1.3% after slashing capacity on its summer routes and suspending its buyback program to conserve cash. Royal Caribbean Cruises (NYSE:RCL) fell 8.9% after it withdrew its guidance for the year, due to uncertainty over the coronavirus impact.
Stock index futures had been up as much as 5% overnight on hopes that U.S. stimulus measures would be announced today following statements by President Donald Trump.
Trump said Monday a payroll tax cut was definitely on the agenda and an announcement would come today, but reports later said the White House staff was surprised by his statement as there were many details to iron out.
Senate Majority Leader Mitch McConnell is reluctant to support a payroll tax cut, the Washington Post reported.
Republicans in the Senate are set to be briefed by the White House at a lunch meeting today. A press briefing is scheduled in the White House for 5:30 PM ET.