An artist named Theodore Tsinias who wrapped himself next to the Charging Bull to show his attention to the behavior of the world in the midst of the Covid-19 pandemic in Lower Manhattan, New York City, United States, on May 25, 2020 .
Tayfun Coskin | Anadolu Agency | fake pictures
Stock futures held steady in operations overnight after a strong performance in tech stocks pushed the S&P 500 into positive territory throughout the year.
Dow Jones Industrial Average futures rose approximately 10 points, while S&P 500 and Nasdaq 100 futures changed little.
The overnight action followed a strong performance in tech stocks that pushed Nasdaq up 2.5%. Amazon led the gains in popular tech names with a jump of 7.9% on Monday, its best day since December 2018. The Nasdaq 100, consisting of the 100 largest nonfinancial companies in the composite, had 2.8% at its highest day gain since April.
IBM gained 4.7% in extended trading after the company reported better-than-expected second-quarter earnings. In particular, IBM improved gross margins in three of its five units in the last quarter.
“We expect the growth company’s strong balance sheets and low interest rates to support higher valuations for growth stocks than for value stocks in the near term,” Ken Johnson, investment strategy analyst at Monday, said. Wells Fargo.
The market also applauded a lot of positive news on the vaccine front. Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine. Meanwhile, another candidate from the University of Oxford and AstraZeneca showed a positive immune response in an initial trial.
With Monday’s earnings on Wall Street, the S&P 500 turned green for 2020 with a 0.6% increase for the year, while the Nasdaq increased 20% this year. However, the 30-share Dow was delayed, 6.5% in 2020.
Investors are also monitoring talks in Washington about the upcoming coronavirus relief bill. Lawmakers face pressure to pass laws before the end of the month, when the federal unemployment insurance benefit of $ 600 per week expires.
“I think the stock market would benefit from the news that a stimulus package is coming to fruition,” Kristina Hooper, Invesco’s chief global market strategist, said in a note Monday. “At times like this, despite a massive and growing budget deficit for the US, I think big government is probably good news for the stock market.”
More companies will report quarterly earnings on Wednesday. Coca-Cola and Philip Morris will drop the results before the bell, while United Airlines will report after the close.
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