US stock index futures traded slightly higher on Monday after wobbling early on the first day of trading in August. Disputes broke out in Washington over another round of coronavirus incentives that fueled the appetite for high-capitalization technology stocks that were seen as more resilient to the economic impact of the COVID-19 pandemic.
How are stock benchmarks developing?
Futures for the Dow Jones Industrial Average (YMU20) (YM00) rose 100 points or 0.4% to 26,416; while S&P 500 futures (ESU20) (ES00) were 3,280, up 16.50 points or 0.5%. Nasdaq 100 futures (NQU20) (NQ00) were up 100 points or 0.9% to 10,990.50.
The Dow (DJIA) lost 0.2% weekly on Friday, while the S&P 500 (SPX) rose 1.7% and the Nasdaq Composite Index (COMP) rose 3.7% over the period. In July, the indices posted a fourth consecutive monthly gain, with the Dow up 2.4%, the S&P 500 up 5.5% and the Nasdaq up 6.8% during the month.
What drives the market?
Market participants focus on the fact that there is no sign of a stimulus package between Democrats and Republicans after weekend negotiations failed to replace a weekly $ 600 weekly increase in unemployment benefits that expired on Friday.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin revealed clear lines of error in the negotiations between the parties during Sunday’s talk shows. Pelosi said that “if we … have an agreement we will be close to an agreement” and spoke to ABC’s Martha Raddatz about “This Week”.
For Democrats and Republicans, the level of unemployment benefits for Americans is at stake. The White House has advocated reducing federal aid to $ 200 a week. The Democrats have asked to keep them at $ 600 a week. However, the parties both appear to be supporting a new round of $ 1,200 stimulus checks for workers.
The struggle for help for unemployed Americans precedes Friday’s July job report, which examines the effects of the fatal pathogen on employment as cases of infection have increased steadily in a number of countries.
Indeed, 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 COVID-19 cases and approximately 155,000 deaths, according to Johns Hopkins University, while the global number of infections is over 18 million and nearly 690,000 deaths.
In the meantime, investors can focus on developments between Microsoft Corp. (MSFT) and video sharing app TikTok, owned by a Chinese company, ByteDance. Microsoft confirmed talks to buy the company’s American unit, and Microsoft CEO Satya Nadella said he had spoken to President Donald Trump. Trump signaled on Friday that he was considering banning the popular app.
Secretary of State Mike Pompeo said the weekend that the White House might take action against other Chinese software companies, highlighting the heightened tensions between Beijing and Washington.
Looking to the future, investors were waiting for a report on the production activity of the Institute for Procurement Management for July, which was due at 10 a.m.CET, and for a report on construction expenditure for June. A separate, less closely tracked report on the manufacture of IHS Markit will be released at 9:45 a.m.
On the front of the Federal Reserve, the President of the St. Louis Fed, James Bullard, is expected to speak at 12:30 p.m., while Charles Evans, President of the Chicago Fed, is expected to speak at 2:00 p.m.
Which stocks are in focus?
- Shares of Clorox Co. (CLX) rose on Monday in premarket trading after the cleaning and household products manufacturer reported earnings and sales in Q4 that exceeded expectations as it benefited from the demand for cleaning products due to the COVID-19 pandemic Inline outlook.
- Microsoft (MSFT) shares rose 2% on Monday after confirming on Sunday that talks with Chinese company ByteDance were in progress to buy its TikTok unit’s US operations.
- Marathon Petroleum Corp.. (MPC), fresh from the sale of its gas stations to owners of the 7-eleven convenience store chain for $ 21 billion in the largest US energy business of the year, posted second quarter earnings on Monday less than expected adjustment loss, but revenue that fell short of estimates.
- Shares of private and commercial security service providers ADT Inc.. (ADT) rose strongly in premarket trading on Monday after the company announced a new company Alphabet Inc.‘s (toget) (togetL) Google is developing the next generation of smart home security offerings.
- Apple Inx. (AAPL) bought an online payment startup that, according to a report, could turn iPhone into a payment terminal, similar to Square (SQ). According to Bloomberg News, Apple bought Montreal’s Mobeewave for around $ 100 million.
Video: Nasdaq rises in megacap profits, but uncertainty about US fiscal policy gnaws (Reuters)