Stock index futures fell early Tuesday, pointing to a weaker start for US stocks as investors focused on conversations between Republicans and Democrats about a second coronavirus aid package and a deluge of corporate results. of the second trimester.
What are the main indexes doing?
Futures in the Dow Jones Industrial Average YM00,
were out of 78 points, or 0.3%, at 26,406, while the S&P 500 ES00 futures,
decreased 7.45 points, or 0.2%, to 3,224.75. Nasdaq-100 NQ00 futures,
lost 30.25 points, or 0.3%, to 10,645.
The Dow DJIA,
Monday ended with a gain of 114.88 points, or 0.4%, at 26,584.77, while the S&P 500 SPX,
It gained 23.78 points, or 0.74%, to close at 3,239.41. The Nasdaq COMP Compound,
advanced 173.09 points to finish at 10,536.27, an increase of 1.7%.
What is driving the market?
Senate Republicans on Monday unveiled a coronavirus relief package of about $ 1 trillion, starting negotiations with Democrats on a package. A fight is looming for unemployment jobless benefits, with Democrats eager to keep the existing weekly supplement of $ 600, while the Republican plan would cut it to a supplement of $ 200 through September. Supplemental unemployment benefits expire at the end of the month.
Democrats and Republicans also want to issue another round of stimulus checks, but disagree with the details.
See:Republicans and Democrats want another round of stimulus checks, but this is where they disagree.
Analysts said the additional unemployment benefits have been credited with helping to cushion the COVID-19 pandemic hit.
“In our view, for stocks to continue yesterday’s rally, common ground must be found before Friday when the improved unemployment benefits expire,” said Charalambos Pissouros, senior market analyst at JFD Group. Pissouros said a package close to $ 1 trillion or less would likely be a disappointment to the market.
Meanwhile, the number of cases in the US increased to 4.29 million and the death toll reached 148,056. Texas became the fourth state with more than 400,000 cases, joining California, Florida, and New York. The global count of confirmed cases of COVID-19 rose to 16.5 million on Tuesday, according to data added by Johns Hopkins University, while the death toll rose to 654,327.
On the vaccine front, Moderna Inc. MRNA,
started its late stage testing while Pfizer Inc PFE,
and BioNTech BNTX,
entered late-stage trials of their candidates.
Earnings reports were arriving or expiring from several high-profile companies, including 3M Co.
MMM
Pfizer Inc.
PFE
and McDonald’s Corp.
DCM
before the opening bell in the busiest week of the earnings season.
The Federal Reserve will begin a two-day policy meeting on Tuesday that is unlikely to generate much action, but President Jerome Powell is expected to underscore the will to take further steps to support the economy and maintain easy financial conditions.
The economic calendar presents the Case-Shiller Home Price Index for May at 9 a.m.
Which companies are in focus?
- Pfizer Inc. Stocks rose more than 3% in pre-market trading after exceeding earnings and revenue expectations and raising their full-year outlook.
- 3M Co. Shares fell more than 2% in pre-market action after the diversified maker of healthcare, consumer and industrial products reported second-quarter earnings and revenues that were below expectations, with results “significantly affected” by the COVID-19 pandemic.
- Actions of McDonald’s Corp. It fell more than 3% before the bell after the fast-food chain reported earnings that fell short of Wall Street forecasts.
- Raytheon Technologies Corp.
RTX
-1.57%
Stocks were higher in pre-market stock after beating earnings and revenue forecasts.
How do other markets operate?
In Asia, China’s CSI 300 meter 000300,
rose 0.9%, the Shanghai Composite SHCOMP,
It gained 0.7%, the Hong Kong Hang Seng HSI Index,
rose 0.7% and Nikkei 225 NIK from Japan,
advanced 0.3%.
In Europe, the Stoxx 600 Europe SXXP index,
was 0.1%, while the UK FTSE 100 UKX,
gained 0.2%.
GCQ20 Gold Futures,
lost 0.4% a day after hitting a record high, while the ICE US Dollar DXY index,
It rose 0.1% after reaching a two-year low.
CLU20,
Oil futures were mixed, with the US benchmark CLU20,
it fell 0.3% on the New York Mercantile Exchange.
The yield on the 10-year US Treasury bond TMUBMUSD10Y,
it rose 0.8 basis points to 0.611%. Yields move in the opposite direction of prices.
.
