Stock-index futures points are lower as investors watch coronavirus support talks, assessing earnings floods

Stock-index futures were lower in early Tuesday, pointing to a weak start for US equities as investors focused on a second coronovirus aid package between Republicans and Democrats and an accumulation of second-quarter corporate results .

What are the major indices doing?

Futures on Dow Jones Industrial Average YM00,
78 points or 0.3%, were closed at 26,406, while the S&P 500 futures ES00,
It lost 7.45 points or 0.2% to close at 3,224.75. Nasdaq-100 Futures NQ00,
It lost 30.25 points or 0.3% at 10,645.

Dow djia,
+ 0.43%
On Monday, the S&P 500 SPX finished at 200, up 114.88 points or 0.4%, at 26,584.77.
+ 0.74%
23.78 points, or 0.74%, to close at 3,239.41. Nasdaq Composite Comp,
+ 1.67%
Advanced 173.09 points to 10,536.27, ending up 1.7%.

What is driving the market?

Senate Republicans on Monday revealed a nearly 1 trillion coronovirus relief package, closing negotiations with Democrats on a package. The Republican plan fights on supplemental unemployment benefits with Democrats eager to maintain the current $ 600 weekly supplement, while the Republican plan will reduce it to a $ 200 add-on through September. Supplemental unemployed benefits are due to expire at the end of the month.

Democrats and Republicans also want to issue another round of stimulus investigations, but disagree on the details.

See:Both Republicans and Democrats want another round of stimulus checks – but here they disagree

Analysts said additional unemployed benefits have been credited with helping reduce the outbreak of the COVID-19 epidemic.

“In our view, for equities to continue tomorrow’s rebound, a common ground must be found before Friday when the increased unemployment benefit ends,” said Charalambos Pisros, senior market analyst at JFD Group. Pissouros said a package near $ 1 trillion or less would likely come as a market disappointment.

Meanwhile, the number of US cases rose to 4.29 million and the death toll stood at 148,056. Texas became the fourth state with more than 400,000 cases, joining California, Florida and New York. On Tuesday, COVID-19 confirmed global mail reached 16.5 million, according to Johns Hopkins University data, while the death toll rose to 654,327.

On the vaccine front, Modern Inc. MRNA,
+ 9.15%
Pfizer Inc. PFE kicked off its late stage test, while
And biotech BNTX,
+ 2.80%
Entered the late stage trials of its candidates.

Earnings reports were among several high-profile companies that were involved in or were running 3M Company
+ 2.12%,
Pfizer Inc.
And McDonald’s Corp
Municipal Corporation of Delhi,
+ 1.27%
Ahead of the opening bell in the busiest week of the earnings season.

The Federal Reserve will begin a two-day policy meeting from Tuesday, which is unlikely to result in much action, but it is expected that Chairman Jerome Powell underscores the willingness to take further action to support the economy and maintain easy financial conditions. will do.

In the economic calendar, the Case-Schiller Home Price Index is introduced at 9 am Eastern for May, while a reading on consumer confidence for July is at 10 pm Eastern.

Which companies are the focus?
  • Pfizer Inc. The shares traded more than 3% after beating earnings and revenue expectations and boosting its full-year outlook.
  • 3M Company Diversified manufacturers of health care, consumer and industrial products reported profit and revenue in the second quarter, which was “significantly affected” by the expected COVID-19 epidemic, after premarket action declined more than 2%. .
  • Shares of McDonald’s Corp The drop in earnings fell more than 3% ahead of the bell due to a lack of Wall Street forecasts by fast-food chains.
  • Raytheon Technologies Corporation
    It beat both earnings and revenue forecasts after prior action in the shares.

How are other markets trading?

In Asia, China’s CSI 300 gauge 000300,
+ 0.87%
0.9%, Shanghai Composite SHCOMP,
+ 0.70%
0.7%, Hong Kong’s Hang Seng Index HSI,
+ 0.68%
Rose 0.7% and Japan’s Nikkei 225 NIK,
Advanced 0.3%.

In Europe, Stoxx 600 Europe Index SXXP,
0.1%, while UK FTSE 100 UKX,
Achieved 0.2%.

Gold futures GCQ20,
The day after hitting the all-time high was a 0.4% discount, while the ICE US Dollar Index DXY,
+ 0.28%
Was up 0.1% after a two-year low kill.

Oil futures merged with US benchmark CLU20
New York Mercantile Exchange lost 0.3%.

TMUBMUSD10Y, yield on 10-year US Treasury note
Was 0.8 basis points at 0.611%. The yield moves in the opposite direction of prices.


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