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Dow futures slip on Tuesday morning as investors become cautious after a technology-driven rally

US stock index futures fell on Tuesday, a day after a solid rally in tech and e-commerce company stocks pushed the Nasdaq Composite to its 29th record for 2020. Investors have turned their attention to income and ending negotiations between Democrats and Republicans on a new round of coronavirus relief for Americans fired from the COVID-19 pandemic.

How do equity benchmarks perform

Futures for the Dow Jones Industrial Average YM00,
traded 68 points, or 0.3%, lower at 26,490, while S&P 500 futures ES00,
decreased 14.90 points, or 0.5%, to 3,273.50. Nasdaq-100 futures NQ00,
decreased by 52.75 points to 10,990.50, down 0.5%.

On Monday, the Dow DJIA,
+ 0.89%
increased 236.08 points, or 0.9%, to close at 26,664.40. The S&P 500 SPX,
+ 0.71%
increased 23.49 points, or 0.7%, to 3,294.61. The Nasdaq Composite COMP,
+ 1.46%
achieved 157.52 points, or 1.5%, to close at 10,902.80.

What drives the market?

Market participants watched increasing progress between Democrats and Republicans on a tax support package that could deliver trillions more for Americans who lost their jobs during the worst pandemic of generations, with a resolution that seems unlikely until next week at the earliest.

At the end of Monday, Treasury Secretary Steven Mnuchin said that Republicans had “made a bit of progress” in two-hour discussions to resolve the disparities, while Senate minority leader Chuck Schumer said progress had been made. provide funding for school safety during the epidemic, but deadlines remain on issues including state aid and local aid and the crucial extension of supplementary insurance for the unemployed. There is a “desire to get something done as soon as possible,” Schumer said to reporters.

Discussions have continued as federal unemployment benefits of $ 600 a week have passed, as has a federal moratorium on evictions. It is increasingly said that a deal will not be closed until September.

Central bankers said on Monday that the talks in Congress are an important part of preventing a deeper recession.

“The ball is on Congress,” Chicago Federal Reserve President Charles Evans told reporters to summarize the current state of economic policy. “Tax policy is really fundamental to get us going,” he said.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said investors are digesting profits and developments in Washington pending the important job report expected Friday.

“US markets are paused this morning, as investors look at this week’s developments so far and are catching their breath pending a host of planned news reports expected later in the week,” he said in a Tuesday study.

Looking ahead, Tuesday’s trading is light on data, but vehicle sales will show up all morning, with a lecture on factory orders for June due at 10:00 a.m. Eastern Time.

Which stocks are in focus?
  • Ralph Lauren Inc.. RL,
    shares fell in premarket trading on Tuesday after the luxury lifestyle brand reported fiscal Q1 earnings that missed expectations.

  • Shares of Abiomed Inc.. ABMD,
    + 2.80%
    recovered in premarket trading on Tuesday after the company said its Impella heart pump had been granted urgent use by the Food and Drug Administration as a treatment for some COVID-19 patients.

  • Travel briskly Booking.com
    to cut 25% of its staff as a result of the COVID-19 pandemic.

  • KKR & Co.
    + 1.21%
    on Tuesday it said profit for the second quarter rose year on year, marking a recovery for the asset manager.

  • Space tourism company Virgin Galactic Holdings
    + 6.99%
    says it has entered into deposit agreements with a dozen new customers, planning to sell more than 20 million new shares.

  • Market participants are waiting for quarterly results from Walt Disney & Co.
    after closing regular trading on Tuesday

  • Marker for alternative fuel truck Nikola Corp.. NKLA,
    + 21.63%
    will report later on Tuesday.

  • Dating platform Match Group Inc.. MTCH,
    + 7.50%
    is scheduled to report the results after the closing bell.

  • Alternative meat maker Beyond Meat
    + 6.68%
    is set to report its earnings in after hours.

How do other markets trade?

The 10-year yield on Treasury bills TMUBMUSD10Y,
fell 3 basis points to about 0.530%. Bond prices reverse conversions.

Global stock markets were mixed. The Stoxx Europe 600 index SXXP,
fell 0.5%, and the FTSE 100 UKX,
lost less than 0.1%.

In Asian trading Tuesday, CSI 300 index of China 000300,
+ 0.09%
won less than 0.1%, the Shanghai Composite Index rose 0.1% higher. Japanese benchmark Nikkei index NIK,
+ 1.70%
climbed 1.7% after a 2.2% gain on Monday.

For other assets, the dollar rose, with the ICE US Dollar index DXY,
+ 0.49%
jump 0.2%.

Raw futures CL00,
fell by West Texas Intermediate oil which fell 1.7%, or 68 cents, to $ 40.33 on the New York Mercantile Exchange. Gold futures for GCQ December 20,
+ 0.22%
rose $ 5.70, or 0.3%, at $ 1,992 an ounce.