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Stock index futures point lower as investors follow conversations about coronavirus aid and assess earnings flow

Equity index futures were lower in early Tuesday, indicating a weaker start for U.S. equities as investors focused on conversations between Republicans and Democrats about a second coronavirus aid package and a torrent of second-quarter results.

What do large indexes do?

Futures on the Dow Jones Industrial Average YM00,
-0.45%
were 78 points (0.3%) lower at 26,406, while S&P 500 futures ES00,
-0.35%
fell 7.45 points, or 0.2%, to 3,224.75. Nasdaq-100 futures NQ00,
-0.50%
lost 30.25 points, or 0.3%, at 10,645.

The Dow DJIA,
+ 0.43%
on Monday ended with a profit of 114.88 points, or 0.4%, at 26,584.77, while the S&P 500 SPX,
+ 0.74%
achieved 23.78 points, or 0.74%, to close at 3,239.41. The Nasdaq Composite COMP,
+ 1.67%
increased 173.09 points and ended at 10,536.27, a 1.7% profit.

What drives the market?

Senate Republicans unveiled a $ 1 trillion corona virus aid package Monday, which started negotiations with Democrats on a package. A fight for additional unemployment benefits is imminent, with Democrats keen to keep the existing $ 600 weekly supplement, while the Republican plan would reduce it to an add-on of $ 200 until September. The additional unemployment benefits will expire at the end of the month. .

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

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

Analysts said the added jobless benefits have been attributed to helping cushion the blow from the COVID-19 pandemic.

“In our opinion, for stocks to continue yesterday’s recovery, a common ground must be found before Friday, when heightened unemployment benefits expire,” said Charalambos Pissouros, senior market analyst at JFD Group. Pissouros said a packet of nearly $ 1 trillion or less would likely disappoint the market.

Meanwhile, the number of cases in the US has risen to 4.29 million and the death toll was 148,056. Texas became the fourth state with more than 400,000 cases, joining California, Florida, and New York. The worldwide number of confirmed cases of COVID-19 rose to 16.5 million on Tuesday, according to data collected by Johns Hopkins University, while the death toll rose to 654,327.

On the vaccine front, Moderna Inc. MRNA,
+ 9.15%
started its late phase trial while Pfizer Inc PFE,
-0.31%
and BioNTech BNTX,
+ 2.80%
went into late testing with their candidates.

Income reports came in or came from a number of high-profile companies, including 3M Co.
MMM,
+ 2.12%,
Pfizer Inc.
PFE,
-0.31%
and McDonald’s Corp.
MCD,
+ 1.27%
for the opening bell in the busiest week of the profit season.

The Federal Reserve will start a two-day policy meeting on Tuesday that is unlikely to lead to much action, but President Jerome Powell is expected to underline the willingness to take further action to support the economy and maintain easy financial conditions.

On the economic calendar, the Case-Shiller house price index is expected at 9:00 AM Eastern for May, while consumer confidence is expected at 10:00 AM Eastern.

Which companies are central?
  • Pfizer Inc. Shares were up over 3% in premarket trading after beating earnings and sales expectations and raising the full-year outlook.
  • 3M Co. shares declined more than 2% in premarket actions after the diversified healthcare, consumer and industrial producer reported second-quarter earnings and revenues that were below expectations, with results being “significantly impacted” by COVID-19 pandemic.
  • Shares of McDonald’s Corp. slumped more than 3% for the bubble after the fast food chain reported earnings that fell short of Wall Street forecasts.
  • Raytheon Technologies Corp.
    RTX,
    -1.57%
    shares were higher in premarket action after it surpassed both earnings and sales forecasts.

How do other markets trade?

In Asia, China’s CSI 300 meters 000300,
+ 0.87%
increased 0.9%, the Shanghai Composite SHCOMP,
+ 0.70%
achieved 0.7%, Hong Kong’s Hang Seng Index HSI,
+ 0.68%
rose 0.7% and the Japanese Nikkei 225 NIK,
-0.25%
advanced 0.3%.

In Europe, the Stoxx 600 Europe index SXXP,
-0.18%
was 0.1% lower, while the UK FTSE 100 UKX,
-0.10%
achieved 0.2%.

Gold futures GCQ20,
-0.47%
declined by 0.4% per day after reaching a record high, while the ICE US Dollar Index DXY,
+ 0.23%
was 0.1% higher after a two-year low.

CLU20,
-0.33%
Oil futures were mixed, with the US benchmark CLU20,
-0.33%
a 0.3% decrease on the New York Mercantile Exchange.

The return on the 10-year US Treasury bill
TMUBMUSD10Y,
0.609%
increased by 0.8 basis point to 0.611%. Returns move in the opposite direction of prices.

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