Investors cautious after tech-driven rally as Dow futures slip on Tuesday morning


US stock-index futures plummeted on Tuesday after a solid rally in stocks of technology and e-commerce companies, bringing Nasdaq Composite closer to its 29th record by 2020. Investors focused their attention on the earnings and negotiations of Democrats and Republicans. In a new round of coronovirus relief for Americans excluded from work due to the COVID-19 epidemic.

How are equity benchmarks performing

Futures for Dow Jones Industrial Average YM00,
-0.05%
YMU20,
-0.05%
Traded 68 points or 0.3%, lower at 26,490, while the S&P 500 futures ES00,
-0.20%
, ESU20,
-0.20%
It lost 14.90 points or 0.5% to close at 3,273.50. Nasdaq-100 Futures NQ00,
-0.11%
NQU20,
-0.11%
At 10,990.50 there was a 0.5% drop, down 52.75 points.

On Monday, the Dow DJIA,
-0.08%
Climbed 236.08 points or 0.9%, to close at 26,664.40. S&P 500 SPX,
-0.05%
Surged 23.49 points, or 0.7%, to 3,294.61. Nasdaq Composite Comp,
+ 0.02%
157.52 points, or 1.5%, to close at 10,902.80.

What is driving the market?

Market participants were watching progress on a fiscal relief package between Democrats and Republicans that could trump more Americans who have lost their jobs amid the worst epidemics over generations, with a resolution to be as early as next week Is unlikely.

At the end of Monday, Treasury Secretary Steven Menuchin said Republicans “made little progress” in the two-hour discussion to resolve differences, while Senate Minority Leader Chuck Schumer said providing funding for school safety during the epidemic Progress was made, but the issues remain around state and local aid and significant expansion of supplemental insurance for the unemployed. “There is a desire to do something as soon as possible,” Schumer said while speaking to reporters.
The negotiations have dragged on as federal unemployment benefits expire at $ 600 per week, as does a federal moratorium on expulsion. There is increasing discussion that there will be no deal till September.
Central bankers said on Monday that talks in Congress are an important part of avoiding a deep recession.
Chicago Federal Reserve President Charles Evans summarized the current state of economic policy. “Fiscal policy is really fundamental to keep us going,” he said.
SIA Wealth Management’s chief market strategist Colin Szynski said investors are digesting earnings and growth in Washington ahead of a key jobs report scheduled for Friday.
“US markets have halted this morning while investors consider this week’s developments and wait for large amounts of news scheduled later in the week,” he said in a research on Tuesday.
Looking ahead, Tuesday’s trade is light on data, but reports on vehicle sales will be up early in the morning, a reading on factory orders for June due at 10 a.m. Eastern time.

Which stocks are in focus?
  • Ralph Lauren Inc. RL,
    -7.08%
    The stock market declined on Tuesday after the luxury lifestyle brand expected fiscal first quarter revenue.

  • Shares of Abimed Inc. ABMD,
    -0.44%
    The company said on Tuesday that its Impella heart pump had received the right of emergency use from the Food and Drug Administration to treat some COVID-19 patients.

  • Travel firm Booking.com
    BKNG
    -0.07%
    To cut 25% of its workforce as a result of the COVID-19 epidemic.

  • KKR & Company
    Kkr,
    + 0.30%
    Tuesday marked a recovery for the asset management company, with a year-over-year gain in the second quarter.

  • Space tourism company Virgin Galactic Holdings
    SPCE,
    -12.05%
    It entered into deposit agreements with a dozen new customers, plans to sell more than 20 million new shares.

  • Market participants await quarterly results Walt disney & company
    District,
    -0.09%
    After regular trading closed on Tuesday

  • Alternative Fuel Truck Marker Nicola Corp. NKLA,
    + 4.54%
    Will report later on Tuesday.

  • Dating forum Match Group Inc. MTCH,
    -3.24%
    It is scheduled to report its results after the closing bell.

  • Alternative Meat Maker Beyond flesh
    BYND,
    + 0.59%
    Is ready to report its earnings after hours.

How are other markets trading?

TMUBMUSD10Y, yielding 10-year Treasury notes
0.524%
3 basis points fell to about 0.530%. Bond prices run contrary to yields.
Global equity markets were trading mixed. Stoxx Europe 600 Index SXXP,
-0.45%
Declined 0.5%, and FTSE 100 UKX,
-0.23%
Less than 0.1% is lost.
China’s CSI 300 index 000300 on Tuesday in Asian trade,
+ 0.09%
Shanghai Composite Index was up 0.1%, an increase of less than 0.1%. Japan’s benchmark Nikkei index NIK,
+ 1.70%
After climbing 2.2% on Monday, it climbed 1.7%.
Among other assets, the ICE US Dollar Index rose greenback with DXY,
+ 0.42%
Jumping 0.2%.
Crude futures CL00,
-1.00%
West Texas Intermediate oil fell 1.7%, or 68 cents, to $ 40.33 on the New York Mercantile Exchange. Gold futures for December GCQ20,
+ 0.32%
Rose $ 5.70, or 0.3%, to $ 1,992 per ounce.

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