Stock futures fell slightly in trading overnight on Tuesday as the market will start a new quarter after a notable comeback.
Dow Jones Industrial Average futures traded about 55 points below. S&P 500 futures and Nasdaq 100 futures fell 0.2% and 0.1%, respectively. Trading volumes were low.
The market has just reached its best quarter in decades as it retreated from the historical sale caused by the coronavirus. The Dow gained 17.8% in the second quarter, posting its best quarter since 1987, while the S&P 500 ended the period with a gain of close to 20%, its best level since 1998. The technology-heavy Nasdaq shot up 30.6% during the quarter, the most since 1999.
In post-close operations on Tuesday, FedEx rose nearly 9% after posting quarterly earnings and earnings that exceeded analyst expectations. The shipping company experienced an increase in deliveries amid the coronavirus blockade.
While the market rebounded sharply from its March lows, recent spikes in coronavirus cases in some states kept investors on edge. White House health adviser Dr. Anthony Fauci warned Tuesday that if the outbreak continues at its current rate, new daily cases could exceed 100,000 new infections per day.
So far, more than 12 states have paused or reversed their reopens, as cases in the US rose 40% over the past week to an average of about 39,750 on Monday, according to a CNBC analysis of data compiled by Johns Hopkins University.
“We continue to expect it to be an uneven process, albeit on a positive trajectory,” said Keith Lerner, chief market strategist at SunTrust Advisory Services. “The good news is that during this period of digestion, markets are working on some of the excess that had accumulated, and high expectations are being restored.”
Investors will monitor the pace of recovery in the US job market. ADP will launch its private payroll account for June on Wednesday at 8:15 am ET. Economists surveyed by Dow Jones expect a 2.50 million increase after a 2.76 million decrease in May.
On the corporate front, Macy’s will report its quarterly earnings ahead of Wednesday’s bell.
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