American stock futures, House Speaker Nancy Pelosi reached an agreement on a cost package for Congress to support American homes and industries through the epidemic before Tuesday’s deadline.
Securities linked to the S&P 500 rose 0.6%, indicating that US stocks will rise after the opening bell. The broad market index fell 1.6% on Monday as investors worried that legislators were not making progress on the deal.
Ms Pelosi has hinted that the White House needs to strike a deal with Democrats by the end of Tuesday if the government wants to pass the next coronavirus-relief bill before election day. California Democrat and Treasury Secretary Steven Munuchi overcame some policy differences that kept a sharp coronavirus relief package, but controversies remained. Both sides said they are constantly working on the matter.
“There have to be some kind of deal: the most likely outcome is that they have to do something. Given what is happening with Kovid, the economy needs some support and the markets need some kind of guidance, ”said Peter Dixon, an economist at Commerzbank. But “we’re really spending time,” he warned.
House Speaker Nancy Pelosi set Tuesday a deadline for the White House to reach a deal with Democrats on a new coronavirus-relief package.
Photo:
Carlos Beria / Reuters
Markets have risen in recent weeks at every turn in negotiations. If passed, the stimulus package could lead to further rally in stocks.
In bond markets, the benchmark 10-year U.S. Yields on Treasury notes ticked up 0.760% to 0.782% on Monday.
Investors have also flocked to the U.S. in recent weeks. And continue to evaluate the elevated number of new coronavirus infections in Europe. Restrictions have been tightened in some countries, including the UK and France, although most governments have avoided completely curbing business activity, which has kept the economy from collapsing.
“On the virus front, headlines are getting worse, but our base case is still pending that there won’t be another complete lockdown,” said Fahad Kamal, chief investment officer at Kleinort Hambros. “There is still a big difference between the local, targeted lowdown downtime and the shutdown given in March and April.”
Foreign, pan-continental stockx Europe 600 was almost flat. In European equities, Logitech rallied 18.2% as more people worked from home after a spike in demand for computer equipment spurred sales. After a 1% rise in UBS shares, it said its net profit had doubled from the trade surge and would set aside billions for dividends and share buybacks.
China’s Shanghai Composite Index rose 0.5% to close at trading, while Japan’s Nikkei 225 is retreating 0.4%.
U.S. The latest data on the housing market will be published on ET at 8:30 a.m., the latest figures on permits for new construction and the number of new homes built in September. It will be closely scrutinized by investors for clues to the bedrock industry, employment and consumer spending. Economists are expecting signs of moderate growth.
Shares of consumer retailer Procter & Gamble rose 1.8 percent, boosting sales and improving expectations for growth and plans for a stock buyback next year. Technology giants Netflix and Snap, developers of the Snapchat app, are expected to release earnings after the market closes.
According to Mr. Kamal, people who spend more time at home during the epidemic will be especially on Netflix for indications of which companies are benefiting. The stock is among the best performers this year, and has climbed more than 60% so far.
Netflix’s strong results “will be the latest list of the enormous appraisals we pay, whether it makes sense.” Mr. Kamal said. “It will broadly reflect the stay-at-home trade, the trade that has been the winner so far this year.”
Both Congress and the Federal Reserve are entering the trillion-dollar economy to combat the economic damage caused by the coronavirus. WSJ explains where all that excitement money comes from. Photo Illustration: Carlos Waters / WSJ
Ahead of the opening bell in New York, shares of drugmaker Moderna rose 2.9%, while it said its coronavirus vaccine could be validated in December if its clinical trials yield positive results next month. Shares of IBM fell 3 .. %% hours after the results were reported, including no guidance on revenue decline and its outlook.
Write to Anna Hirtenstein at [email protected]
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