US STOCKS-Facebook, Alphabet bolster S&P 500 as investors await stimulus

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* Netflix falls on slowing subscriber growth
* Snap Inc surges on jump in user growth
* Abbott rises after profit forecast bump
* Indexes up: Dow 0.26%, S&P 0.44%, Nasdaq 0.61%

(Updates to market open)
By Medha Singh
Oct 21 (Reuters) - The S&P 500 climbed on Wednesday helped
by gains in internet companies Facebook and Alphabet, while
investors waited for signs that Washington could be close to
agreeing on the next coronavirus aid package to support a
fragile economic recovery.
Snap Inc SNAP.N surged 26.6% after the Snapchat messaging
app owner beat user growth and revenue forecasts, as more people
signed up to chat with friends and family during the COVID-19
pandemic. The results boosted the shares of social media companies
Facebook Inc FB.O and Twitter Inc TWTR.N , which were up 4.7%
and 7.2%, while image sharing company Pinterest Inc PINS.N
gained 11.6%.
Gains in Facebook and Google-parent Alphabet Inc GOOGL.O
lifted the communication services sector .SPLRCL by 1.8%.
White House Chief of Staff Mark Meadows said the Trump
administration and House Democrats shared a goal of reaching an
agreement on the stimulus deal in the next 48 hours. The biggest
sticking point remained funding for state and local governments,
he said, adding that progress has been made toward a deal.
Talks between Treasury Secretary Steven Mnuchin and
Democratic House Speaker Nancy Pelosi will continue on
Wednesday. The Trump administration has proposed $1.8 trillion
in aid, while Democrats are pushing for $2.2
trillion. "We could expect talks to go on right until the election on
Nov. 3, but it is likely (a deal) will be reached which could
send markets on an upward trajectory." said Mihir Kapadia, chief
executive officer of Sun Global Investments.
The major U.S. stock indexes have traded in a tight range
over the past week as investors track progress over stimulus
talks.
Wall Street's fear gauge .VIX pushed past 30 points to hit
a one-month high as the U.S. election campaign entered its final
stretch. Democratic challenger Joe Biden and President Donald
Trump will face off in their second and final debate on Thursday
night. The race is closer in the battleground states that are
likely to decide the winner of the Nov. 3 election,
Reuters/Ipsos polling showed, while national polls put Biden
well ahead of Trump.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI
was up 72.82 points, or 0.26%, at 28,381.61, the S&P 500 .SPX
was up 15.01 points, or 0.44%, at 3,458.13. The Nasdaq Composite
.IXIC was up 70.16 points, or 0.61%, at 11,586.65.
The energy sector .SPNY dropped 1.1% as oil prices fell.
Netflix Inc NFLX.O kicked off earnings from the Big Tech
club, and was down 4.8% after it missed expectations for
subscriber growth as streaming competition increased and live
sports returned to television.
Of the 66 S&P 500 firms that have reported third-quarter
results, 86.4% have topped expectations for earnings, according
to IBES Refinitiv data.
The U.S. central bank's "Beige Book" report, a snapshot of
the economy gleaned from discussions with business contacts, is
scheduled to be released at 2 p.m. ET (1800 GMT).
Advancing issues outnumbered decliners for a 1.19-to-1 ratio
on the NYSE and a 1.23-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and no new low,
while the Nasdaq recorded 28 new highs and 11 new lows.