US stock futures rose slightly in overnight trading and signaled gains at the opening on Tuesday, the last trading day of a volatile month for the stocks.
Dow futures were up 80 points, or 0.45%. The S&P 500 and Nasdaq-100 would also open higher, with gains of 0.45% and 0.50%, respectively.
Wells Fargo shares reached nearly 2% less in the hours after trading after the bank said it would likely cut its dividends in the third quarter to meet the Federal Reserve stress test. Bank of America, Citi, JPMorgan and Goldman Sachs said their dividends would remain the same.
Shares of Micron chip stocks rose 5% after trading hours on Monday after their better-than-expected earnings report. Micron gave a strong guide to future earnings. Lululemon’s shares also gained nearly 4% in the extended news trade that home fitness company Mirror will acquire for $ 500 million.
On Monday, the Dow rose 580 points, helped by a 14.4% rise in Boeing shares, as certification flights for the Boeing 737 Max began Monday. The S&P 500 also posted a profit, up 1.5%. Monday’s gains pushed the 500-share index into positive territory during the volatile month of June.
The Nasdaq Composite was up 1.2%, helped by earnings on Netflix, Microsoft, Facebook and Apple.
“It was not a day when the only driving force was simply the rise in expectations of continued economic improvement due to the better results in sector five [Monday] It comprised two cyclical, industrial and materials sectors, a growing sector, communication services, and two defensive sectors, utilities and commodities, “Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. Monday” was characterized for broad participation in a strong meeting. “
Monday’s strong gains came in the context of growing cases of coronavirus in the US and states have been trying to reopen since the shutdown. United States governors are backing off or delaying reopening plans as Covid-19 cases escalate across the country. New Jersey Governor Phil Murphy announced that the state will delay the resumption of the indoor meal that was scheduled for Thursday.
Despite the recent surge in cases, stocks are headed for a month of gains in June. The Dow was up 0.8% and the S&P 500 was up 0.3% in June. The tech-packed Nasdaq Composite has returned more than 4% this month.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 pm Tuesday. The joint hearing will address the Fed and Treasury response to the coronavirus pandemic.
Speaking Tuesday, Powell said uncertainty reigns over the outlook for the economy in the wake of the coronavirus pandemic.
“Production and employment remain well below their pre-pandemic levels. The way forward for the economy is extremely uncertain and will largely depend on our success in containing the virus,” Powell said. “A full recovery is unlikely until people are sure that it is safe to re-engage in a wide range of activities.” The way forward will also depend on political actions taken at all levels of government to provide aid and support recovery for as long as necessary, “added Powell.
The Conference Board Consumer Confidence Index It will leave at 10:00 am on Tuesday. Economists surveyed by Dow Jones expect a reading of 91 in June, compared to May’s reading of 86.6.
The FedEx shipping company will report fourth-quarter tax earnings after the bell on Tuesday.
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