Inventory futures combined as Congress passes COVID legislation
US stock futures were mixed early Tuesday morning after a volatile day on Wall Street when the Dow Jones Industrial Average cleared a 400-point deficit.
Dow-linked futures contracts were 30 points lower while the S&P 500 futures went positive. The Nasdaq 100 futures were also in positive territory. Previously, Dow futures were down more than 100 points.
The subdued movement in the future came when Congress passed a package on coronavirus relief and government spending on Monday night. The bill now goes to President Donald Trump’s desk.
During Monday’s regular market hours, stocks opened significantly lower on concerns over a new variant of Covid-19 in the UK. Many European countries have introduced travel restrictions on visitors from the UK, and New York Governor Andrew Cuomo has urged the United States to take similar steps.
However, many experts, including those from the World Health Organization, said Monday that Pfizer and Moderna’s coronavirus vaccines would likely be effective against the new variant and that Covid mutated more slowly than seasonal flu.
The Dow finished the race up 37 points, thanks in part to strong performance in bank stocks. The S&P 500, Nasdaq Composite, and stocks linked to the travel industry have left their session lows well behind.
Jonathan Golub, chief US equity strategist at Credit Suisse, told Closing Bell that he expected the economy and markets to continue to cool in the coming months before consumer spending rose in mid-2021.
“I don’t think there is a smooth, simple, straightforward story,” said Golub. “I think for the next three or four months the reopening process is going to be sloppy.”
Monday was also the first day of trading that Tesla was a member of the S&P 500. The electric vehicle population lost 6.5%. Part of that loss came after Reuters reported that Apple was targeting 2024 as the date for the launch of its own passenger car.
Turning to economic data, investors will get new information on consumer confidence and home sales on Tuesday.
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