Skip to main content

US Market | Futures Indicator: Dow futures gain 100 points as market tries to rebound from Monday's big sell-off

 

Fred Imbert, Maggie Fitzgerald


U.S. stock futures rose early Tuesday as markets attempted to rebound from a massive sell-off a day earlier.

Dow Jones Industrial average futures added 101 points, or 0.4%. The move indicated an opening gain of about 100 points. S&P 500 futures gained 0.4%. Nasdaq-100 futures rose 0.5%.

Technology shares bounced on Tuesday after AMD said it was buying rival Xilinx in a $35 billion all-stock deal in a push for the data center market. Xilinx led chip stocks higher in the premarket, gaining 10%. AMD shares slipped by 5%.

Fueling the weakness in the markets was a surge in Covid-19 cases in the U.S., compounded by diminishing hope of a stimulus package from Washington before the election, which is just one week away.

On Monday, equities plunged in their worst session since early September amid a surge in Covid-19 cases across the country. The Dow Jones Industrial Average fell 650 points, for its worst day since Sept. 3 and closing below 28,000 for the first time since Oct. 6.

The S&P 500 lost 1.86% on Tuesday, dragged down by stocks that hinge on a reopening of the economy like airlines, cruise lines and retailers. The technology-heavy Nasdaq Composite fell 1.64%.

Stocks did close off their lows Monday. The Dow fell more than 950 points at one point in the session.

Friday and Saturday saw cases spike above 83,000, according to data from Johns Hopkins University. The data on Sunday also showed the country has reported a record average of 68,767 cases per day over the past seven days.

“This sell-off, whatever the rationale, was well-telegraphed. It was the consensus that we were going to have a pullback before the election. A number of strategists suggested it. Technical indicators indicated we were going to have it,” Quincy Krosby, Prudential Financial chief market strategist, told CNBC.

Wall Street is also monitoring coronavirus aid package negotiations. House Speaker Nancy Pelosi’s spokesperson said on Twitter that the Democratic leader remains “optimistic” about a pre-election deal after Monday’s phone call with Treasury Secretary Steven Mnuchin. However, the spokesperson said Democrats are still waiting on the White House to accept its language around Covid-19 testing and that “our progress depends on Leader McConnell agreeing to bipartisan, comprehensive legislation.” 

With the presidential election only a week away, Fundstrat Washington policy strategist Thomas Block told clients, “it looks like the clock has run out” on a second Covid-19 stimulus bill for now. Block also said the the period of time after a November election and before the beginning of the new Congress is “not very productive, especially if the election results in a change to lineup for the coming year.”

With less than a week of trading left in October, the Dow is down slightly for the month and the S&P 500 and Nasdaq are up 1.1% and 1.7%, respectively.

“The biggest risk appears to be the threat of a contested election and the country not knowing the winner of the Presidential election next Tuesday night,” Brian Price, Head of Investment Management for Commonwealth Financial Network, told CNBC.” I think that investors are taking some chips off the table or increasing their hedging positions in advance of what could be a tenuous period for risk assets.”

A slew of large-cap companies report quarterly earnings on Tuesday with manufacturing giant’s 3M and Caterpillar set to release before the bell. Healthcare giants Eli Lilly, Merck & Co., and Pfizer also report before the opening bell. BP, Harley-Davidson, JetBlue and Raytheon Technologies also report Tuesday morning.

Wall Street is also gearing up for Microsoft earnings after the bell on Tuesday. The technology giant saw revenue grow 13% last quarter despite the pandemic. Advanced Micro Devices and Chubb also report following the close on Tuesday.

The Conference Board’s Consumer Confidence Index for October will be released at 10 a.m. ET on Tuesday. Analysts polled by FactSet are expecting a reading of 102.3, after September’s reading of 101.8.

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in