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US stock futures USA They rose slightly in overnight trading and posted gains at the opening on Wednesday, after two positive sessions in the stock markets.
The increase in the number of states is beginning to reopen their economies in the first two weeks of May, making investors optimistic, the worst of the economic damage from the pandemic has passed.
Dow futures gained 60 points, indicating a 0.25% gain. The S&P 500 and Nasdaq would also open more, with gains of 0.25% and 0.5%, respectively.
On Tuesday, the Dow Jones Industrial Average rose 133 points, after rising 419 points at its highest point of the day. The S&P 500 was up 0.9% and the tech-heavy Nasdaq Composite gained 1.13%. Large-cap technology companies (Microsoft, Apple, and Facebook) added to its recent strength.
“The market is enjoying the opening of the economy, albeit on a gradual schedule, but more and more states are opening,” Quincy Krosby, chief market strategist at Prudential Financial, told CNBC. “The numbers in terms of new cases remain at a level that, at this time, does not suggest that openness is causing cases to increase.”
The fast-spreading coronavirus, which has inflected at least 1.1 million Americans and killed more than 70,000, according to Johns Hopkins University, has seen a decrease in news cases in the US. USA
California will allow clothing stores, bookstores and flower shops to reopen for pickup on the sidewalk on Friday, while New York plans to ease restrictions on selected manufacturers, construction and retailers next week.
While US stocks closed in positive territory on Tuesday, but well above their highs, after losing strength in the last hour of trading. Federal Reserve Vice President Richard Clarida said more political support from the central bank and government will be needed to support the markets and the economy.
“The question will be whether the market is moving too fast, too fast as we see this resumption of interest in stocks,” added Krosby. “But for now the market is resuming the move towards absorbing weaker economic data, but essentially trying to look further to see whether or not the economy can open at a faster rate.”
Oil prices also rose 20% on Tuesday, their fifth consecutive day of earnings, fueled by optimism about a pickup in demand as world economies re-open.
Market gains on Tuesday came even after disappointing data on the US service sector. USA The ISM non-manufacturing index fell last month to its lowest level since March 2009.
The earnings season continued on Tuesday when the companies revealed how the coronavirus impacted their corporate earnings. Disney reported a 58% drop in theme park and cruise sales, but participation in its new streaming service, Disney +, is expected to increase. Shares of the media giant declined in extended trading.
Video game company Activision Blizzard increased 5% after hours after it hit earnings and increased its targeting.
The earnings season continues Wednesday with General Motors, CVS Health and Wendy’s reporting ahead of the bell. Transportation company Lyft, Peloton, PayPal, Hyatt Hotels, Etsy and Grubhub will publish quarterly results.
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