U.S. Stock futures are torn between gains and losses as investors monitor whether the Covidavirus infection and deteriorating economic data will force those looking to cement a coronavirus aid package.
Futures linked to the S&P 500 rose 0.1%, indicating that the benchmark stocks gauge will remain relatively unchanged after another record close on Thursday. Technically-focused Nasdaq-100 Advanced 0.2% tied futures.
Top Republicans and Democrats are closing in on a coronavirus relief package that will send direct payments to many Americans, increase unemployment benefits, help small businesses and distribute the Covid-19 vaccine.
In recent days, investors have raised the prospect of additional financial stimulus as measures to end the Covid-19 infection and its spread have weighed heavily on the economy. Figures released on Thursday show that the number of workers seeking unemployment benefits has reached a three-month high.
“There is a clear downturn in the U.S. economy,” said Luca Paulini, chief strategist at Picket Asset Management. “The market is expecting financial stimulus. There will be great disappointment if there is no explanation. “
In offshore trading, FedEx shares fell 2.5% after the delivery company beat analysts’ profit expectations, but said Covid-19 was partially offset by higher costs, including safety equipment to protect workers.
Shares in Darden restaurants,
Operator operator of Olive Garden and Longhorn Steakhouse, sales fell 1.7% as analysts expected. DuPont gained 2.8% premarket after the exchange offer fur allowed its board to separate its nutrition and bioscience business. Earnings updates from Nike are pending after the closing bell.
Tesla’s stock could move ahead of its entry into the S&P 500 next week. Dozens of index funds tracking the S&P 500 will have to buy અ 10 billion worth of stock at Friday’s closing price to follow the index as closely as possible.
Friday also brings the “quadruple witch”, in which the key indices and stock options and futures end together. Trading High trading volumes can bring volatility, but there is also more opportunity to add Tesla shares to the fund.
Shares in Asia were mostly low. The Wall Street Journal reports that U.S. officials are discussing how to expand the list of Chinese companies that have been banned from investing by the United States because of its ties to China’s military. China’s Shanghai Composite Index was down 0.3% and Hong Kong’s Hang Seng was down 0.7%. Japan’s Nikkei 225 index fell 0.2%.
Share in Semiconductor Manufacturing International Corpo.
Hong Kong’s trade fell 2.4% after the Trump administration banned China’s largest manufacturer of computing chips from being blacklisted in the export blacklist.
Pan-continental stocks fell 0.1% in the Europe 600. Investors have been watching closely the post-Brexit trade deal between the UK and the European Union. Some expect the British pound to move further if a deal is struck. European negotiators have said they want a deal by Sunday. Sterling has risen 2.2% this week against a broader weaker dollar.
“The clock is ticking,” said Hugh Gimber, a strategist at JPMorgan Asset Management.
In bond markets, production on 10-year Treasury notes fell 0.929% to 0.925% on Thursday. As prices fall, yields rise.
In the financial district of Manhattan, Christmas tree decoration with the logo of the New York Stock Exchange.
Photo:
Jinnah Moon / Reuters
Write to Caitlin Ostroff at [email protected]
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