Tuesday’s market minute
- Global stocks mingle as risk sentiment improves ahead of a wave of American corporate earnings and a key debate in Congress over the next form of coronavirus relief.
- The US dollar is recovering from its two-year low, while gold is withdrawing from its all-time high as investors await a new round of fiscal stimulus from Washington.
- Coronavirus cases in the United States drop for the first time in five weeks, while Pfizer and Moderna launch large clinical trials of vaccines that could provide short-term advancement in treatment.
- Big profit days on Wall Street are likely to define the direction of the market, with numbers expected from three Dow components: Pfizer, McDonald’s and 3M, as well as Raytheon, Harley-Davidson and DR Horton.
- US equity futures suggest a weakening on Wall Street in the opening bell, with Redbook retail sales data at 8:55 am ET and consumer confidence figures for July at 10:00 am Eastern time.
US stock futures recorded a decline on Tuesday, while the dollar rebounded from a two-year low as investors braced for a wave of corporate earnings that could define the direction of the market in the short term. And they looked at what could be contention talks between Republicans and Democrats about the next form of coronavirus support for the world’s largest economy.
With three Dow components posting mixed earnings before the opening bell – Pfizer (PFE) – Get reportMcDonald’s (DCM) – Get report and 3M (MMM) – Get report– and the Federal Reserve will begin its virtual policy meeting two days later today in Washington, risk markets were relatively muted overnight, with the dollar rising from the two-year lows it touched yesterday and gold withdrawing from all-time maximums.