Solar stocks jump as Senator Joe Manchin reaches a deal with Democrats that includes climate spending

• Solar stocks were higher Thursday as senator Joe Manchin reached a deal with Democrats on climate spending.
• The agreement includes $369 billion in climate and energy spending aimed at cutting US carbon emissions 40% by 2030.

Solar stocks were higher Thursday, following news that Senator Joe Manchin (D-WV) and Majority Leader Chuck Schumer reached a deal on a spending bill that includes climate funds.

The agreement includes $369 billion in climate and energy spending aimed at cutting US carbon emissions 40% by 2030. Manchin previously signaled that he wouldn't support a bill with new tax or climate provisions.

Shares of SunRun and SunPower both jumped as much as 13% while First Solar surged 10% and SolarEdge rallied 6%.

The bill still faces stiff opposition from Republicans and could be derailed by Democrats voting outside of party lines and still needs to pass both chambers of Congress, where Democrats hold a slim majority. The new version's climate provision is $6 billion less than previous iterations.

The bill also keeps intact a Medicare provision which Manchin had previously agreed to. Medicare will be empowered to negotiate down the costs of expensive prescription drugs received at doctors' offices and at the pharmacy. The plan would also overhaul Medicare Part D plans to cap costs for seniors at $2,000 annually.