US stock index futures on Monday traded moderately higher after expecting early action on the first trading day in August, with Washington wrangling over another round of coronavirus stimulus supporting a certain appetite for high-capitalized technology stocks that have been seen as more resistant to the economic effects of the COVID-19 pandemic.
How does the stock index perform?
Futures for the Dow Jones Industrial Average (YMU20) (YM00) increased by 100 points, or 0.4%, to 26,416; while the S&P 500 futures (ESU20) (ES00) was 16.50 points, or 0.5%, higher at 3,280. The Nasdaq-100 futures (NQU20) (NQ00) increased by 100 points, or 0.9%, at 10 points. 990.50.
On Friday, the Dow (DJIA) posted a weekly loss of 0.2%, while the S&P 500 (SPX) gained 1.7% and the Nasdaq Composite Index (COMP) increased by 3.7% during the period. In July, the index posted a fourth straight monthly gain, with the Dow gaining 2.4%, the S&P 500 rising 5.5% and the Nasdaq gaining 6.8% for the month.
What drives the market?
Market participants are focusing on the fact that there is no sign of a stimulus package between Democrats and Republicans after negotiations over the weekend failed to provide compensation for a $ 600 a week boost to unemployment benefits that expired on Friday.
Speaker Nancy Pelosi and the Ministry of Finance Steven Mnuchin revealed clear lines of fault in the negotiations between the parties during Sunday’s talk shows. Pelosi said that “we will be close to an agreement when we have … an agreement”, talking to ABC’s Martha Raddatz about “This Week.”
For Democrats and Republicans, the question is how much unemployment assistance the Americans have. The White House has come forward to reduce federal aid to $ 200 a week. Democrats have demanded that it be kept at $ 600 a week. However, the parties both seem to support a new round of $ 1,200 stimulus checks for workers.
The fight for help for unemployed Americans comes before Friday’s July report on the labor market, which will be considered to determine the deadly pathogen’s impact on employment as infection rates have risen steadily in a number of states.
In fact, coronavirus infections in the United States reached a record high in July, with more than 1.9 million new cases. The United States has nearly 4.7 million confirmed cases of COVID-19 and about 155,000 deaths, while the global number of infections is more than 18 million and nearly 690,000 deaths, according to data compiled by Johns Hopkins University.
At the same time, investors can focus on the development between Microsoft Corp. (MSFT) and the video sharing app TikTok, owned by a Chinese company, ByteDance. Microsoft confirmed talks to buy the company’s US unit and Microsoft CEO Satya Nadella said he spoke with President Donald Trump. Trump on Friday had signaled that he was considering a ban on the popular app.
Secretary of State Mike Pompeo said at the weekend that the White House could take action against other Chinese software companies and highlighted heightened tensions between Beijing and Washington.
Looking to the future, investors were waiting for a report on manufacturing activity for July from the Institute for Supply Management emissions to be paid at 10:00, as well as a report on construction costs for June. A separate, less followed report on manufacturing from IHS Markit will be released at 9.45
At the Federal Reserve up front, St. Louis Fed President James Bullard to speak at 12:30 p.m., while Charles Evans, Chicago Fed President, is scheduled to speak at 2 p.m.
Which layers are in focus?
- Shares of Clorox Co. (CLX) rose in advance trading in the market on Monday, after the manufacturer of cleaning and household products reported a tax profit and revenue from the fourth quarter that beat expectations, as it benefited from demand for cleaning products due to the COVID-19 pandemic, while maintaining a focused view.
- Microsoft (MSFT) shares rallied in the 2% premarket on Monday after confirming on Sunday that they are in talks with the Chinese-based ByteDance to buy the US business in their TikTok unit.
- Marathon Petroleum Corp. (MPC) fresh from the sale of its gas stations to the owners of the 7-Eleven convenience store chain for 21 billion dollars in this year’s largest US energy deal, released revenue for the second quarter Monday, showing an adjustment less than expected loss but revenue that lacked estimates.
- Shares to residential and commercial security provider ADT Inc. (ADT) rose sharply in pre-market trading on Monday, after the company announced a new venture with Alphabet Inc.(GOOG) (GOOGL) Google to create the next generation of smart home security offerings.
- Apple Inx. (AAPL) has purchased an online payment launcher that can turn the iPhone into a payment terminal, just as Square (SQ) does, according to a report. Apple has bought Montreal’s Mobeewave for about $ 100 million, according to Bloomberg News.
Video: Nasdaq grows on megacap revenue but US uncertainty over fiscal uncertainty (Reuters)