US stock index futures on Monday signaled a slightly higher open even as data over the weekend highlighted the persistence of the coronavirus at hotspots, including Florida, Texas and California, fueling concerns about economic prospects.
Financial markets in the US will be closed on Friday in compliance with the July 4 holiday.
How are the benchmarks working?
Futures for the Dow Jones Industrial Average YM00,
YMU20,
it gained 134 points, or 0.5%, at 25,084; those of the S&P 500 ES00,
ESU20,
it collected 8.60 points, or 0.3%, at 3,015.35; while the Nasdaq-100 NQ00 futures,
NQU20,
it fell 21 points, or 0.2%, to 9,844.50.
On Friday, the Dow DJIA,
putting the finishing touches on a weekly decline of 3.3%, down over 700 points on the day, while the S&P 500 SPX,
registered a weekly decrease of 2.9% and the Nasdaq COMP composite index,
fell 1.9% for the week.
What is driving the market?
Risk appetite is limited to starting the week as coronavirus cases worldwide topped 10 million, with more than half a million deaths. A dozen states, including Florida, Texas, California, and Arizona, now hotspots in the U.S., reversed reopening plans and implemented tighter restrictions to prevent further spread of the viral epidemic, the Wall Street Journal reported.
Health and Human Services Secretary Alex Azar said the “window is closing” to handle the resurgence of the epidemic in the United States on Sunday during NBC’s “Meet the Press”.
“We have the tools to do this,” said Azar. “But the window is closing. We have to act, and people as individuals have to act responsibly. “
The inability to reduce the spread of COVID-19 will be problematic for economic projections that take into account a strong V-shaped rebound in business activities, which have stalled or closed to address the public health crisis.
The United States recorded more than 42,000 new cases on Saturday, according to data compiled by Johns Hopkins University, marking a second consecutive daily total of more than 40,000, even if it represents a decrease from Friday’s record of 45,255. Florida, Nevada, George and South Carolina reported an increase in new cases on Saturday, Politico reported.
Meanwhile, in China, industrial profits in May increased 6% from the previous year, representing the first increase in 2020, official statistics released over the weekend showed.
Investors expect some turmoil due to the shortened vacation week and end-of-quarter activity among investment managers, including pensions and mutual funds.
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“In short, with two days to go before the end of the quarter, window decoration is likely to increase volatility with some sectors gaining on others,” wrote Peter Cardillo, chief market economist at Spartan Capital Securities. “However, the trend is likely to remain negative ahead of this week’s key macro indicators and next earnings season,” he said, referring to the quarterly corporate results that started in mid-July.
Looking ahead, investors are waiting for a report on pending home sales at 10 a.m. EST, and a manufacturing survey of the Dallas area of the Federal Reserve at 10:30 a.m., the president of the New York Fed John Williams is scheduled to speak at 3 pm
What actions are in focus?
- Facebook FB,
-2.25%
Starbucks Corp. SBUX,
+ 0.09%
Unilever UN,
-1.35%
ULVR,
-1.96%
will be in focus later announced Sunday that it is “pausing” ads on all social media platforms, two days after the consumer products conglomerate said he was stopping American advertising on Facebook and Twitter
TWTR,
-1.72%
until the end of the year for ineffective surveillance of hate speech, which led to a strong liquidation on Friday in both actions. - US aviation safety regulators are ready to begin key flight testing of Boeing Co.BA,
+ 5.84%
737 Max as early as Monday, aiming to return the planes to service by the end of the year. - Chesapeake Energy Corp.
CHK
-7.27%
He said Sunday that he had filed for bankruptcy protection as a defeat of the oil and gas price fueled by the coronavirus pandemic turned out to be the final blow to a debt-affected shale drilling pioneer. - Actions of Coty Inc.
COTY
+ 11.96%
it skyrocketed in pre-market trade on Monday, after the cosmetics, fragrance and skincare company announced a deal with Kim Kardashian West to develop a global beauty business. - Aurora Cannabis Inc.
ACB
-1.68%
He said Monday that a co-founder and former CEO Terry Booth is leaving his board of directors.
How are other assets working?
West Texas US Intermediate Crude CLQ20,
For August delivery it rose 41 cents, or 1.1%, to trade at $ 38.87 a barrel on the New York Mercantile Exchange. On Precious Metals, US Gold Futures: GCM20
it rose $ 1.10, or less than 0.1%, higher at $ 1,781.40 an ounce.
The 10-year Treasury note yields TMUBMUSD10Y,
the fall was slightly modified to 0.651% amid inflows to safe haven assets. Bond prices move inversely to yields.
The dollar was 0.3% lower against a basket of its main rivals, based on trade in the ICE US Dollar index. DXY
In global equities, the Stoxx Europe 600 SXXP Index,
traded flat and the London FTSE 100 UKX,
they were gaining 0.6%.
In the Asian markets, the Japanese Nikkei NIK,
lost 2.3%, Hang Seng HSI of Hong Kong,
it lost 1%, while Kospi of South Korea decreased 1.9%. CSI 300 000 300 from China,
fell 0.7%, while the Shanghai Composite Index SHCOMP,
decreased 0.6%.
.
