Stock futures changed little on Wednesday, pointing to a flat to slightly higher open on Wall Street, with investors focused on the uncontrolled coronavirus crisis in the United States and jobless claims.
During Wednesday’s regular session, investors shook new international concerns amid tensions between the United States and China, the world’s two largest economies. Instead, optimism about a coronavirus cure, spurred by Pfizer’s nearly $ 2 billion deal with the United States government over its Covid-19 vaccine candidate, led to earnings at the Dow of 30 stocks.
Separately, investors also digested a batch of corporate earnings results from Microsoft (MSFT), Tesla (TSLA) and Chipotle (CMG), all benchmarks in their respective industries. The software giant was boosted by the performance of its cloud platform in the last quarter, but its shares fell in after-hours trading by more than 2%. Meanwhile, the shares of the electric car maker were about to skyrocket on Thursday after posting a surprising second-quarter profit and announcing a new factory in Austin, Texas.
Analysts, meanwhile, are nervously watching another round of coronavirus-related fiscal stimulus talks in Washington, hoping for a compromise on unemployment payments. Markets were also preparing for another grim reading on jobless claims, which are expected to top a million again.
Tuesday’s consulate dispute came as relations with the United States and China were further tested by new fissures in their fractured relations.
China on Wednesday condemned the United States’ decision to order the closure of the Chinese consulate in Houston, which the United States State Department said was a measure to “protect the intellectual property and private information of the United States,” said the State Department spokesman Morgan Ortagus in an email. Beijing promised to retaliate against the forced closure.
In addition, the Justice Department on Tuesday accused two Chinese citizens of trying to steal data, including the US investigation into Covid-19 vaccines, on behalf of Beijing.
Investors also continued to monitor developments in Washington, with discussions on another round of fiscal stimulus underway, as the United States still appears unable to contain its growing COVID-19 cases. Economists warn that the recovery could be compromised by the failure of Congress and the White House to extend a lifeline to liquidity-struggling consumers.
White House and Senate Republicans hit dead ends on Tuesday, with the two sides arguing over whether or not to include a payroll tax cut, as President Donald Trump demanded, or add more money for the tests already. the Centers for Disease Control and Prevention, among other containment points.
On Wednesday afternoon, CNBC reported that Republican lawmakers are considering extending the increased unemployment benefits to $ 100 a week reduced until December, below the $ 600 previously offered.
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6:15 pm ET Wednesday: Stock futures open
These were the main moves at the start of the night session for US stock futures, starting at 6:15 p.m. ET:
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S&P 500 futures (ES = F): 3,268.25, up to 2.75 (+ 0.08%)
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Dow futures (YM = F): 26,900.00, up to 16.00 (+ 0.06%)
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Nasdaq futures (NQ = F): 10,840.50, an increase of 36.25 (+ 0.34%)
NEW YORK, NEW YORK – MAY 26: A trader walks the New York Stock Exchange (NYSE) on the first day traders can return to the historic floor of the exchange on May 26, 2020 in New York City. While only a small number of merchants will return at this time, those who do will have to perform temperature checks and wear face masks at all times while on the floor. The Dow rose more than 600 points in the morning trade as investors see a recovery in economic activity in the United States (Photo by Spencer Platt / Getty Images)
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