Dow Set to Pop as Stimulus Seen as Pending - InvestingChannel

Dow Set to Pop as Stimulus Seen as Pending



U.S. stock futures rose early Tuesday ahead of a deadline for a new fiscal stimulus deal from Washington.

Futures for the Dow Jones Industrials shot higher 169 points, or 0.6%, to 28,269.

Futures for the S&P 500 gained 19.75 points, or 0.6%, at 3,442.50.

Futures for the NASDAQ Composite progressed 38 points, or 0.3%, to 11,688.25.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences” in a Monday afternoon phone call to discuss another stimulus package, according to Pelosi spokesman Drew Hammill. The speaker said that Tuesday is the deadline to reach an agreement before the Nov. 3 election.

Futures also rose after the Moderna CEO told the Wall Street Journal that the company’s coronavirus vaccine could be available for emergency use in December if it gets positive results from its interim trial in November.

Shares of Carnival Corp. and American Airlines both rose more than 2% in pre-market trading.

Meanwhile, shares of Dow component Intel rose about 1% in premarket trading on Monday. The moves came as South Korean chipmaker SK Hynix announced it will buy Intel’s NAND memory and storage business for $9 billion.

Procter & Gamble shares climbed 2% after the company reported sales growth of 9% for the previous quarter. The company’s earnings per share also topped analyst expectations.

Travelers, another Dow component, jumped 2.6% on the back of better-than-expected quarterly results. The company posted a profit of $3.12 per share on revenue of $7.77 billion. Analysts expected earnings of $3.03 per share on sales of $7.55 billion.

Tuesday’s session could also see volatile trading around corporate earnings. Consumer products company Procter & Gamble will release results before the bell, while Snap and streaming video giant Netflix will report after the market closes. Shares of Dow component IBM fell 3% in extended trading after the company reported its third-straight quarter of declining revenue.

Overseas, in Japan, the Nikkei 225 retreated 0.4% Tuesday, while in Hong Kong, the Hang Seng index inched up 0.1%.

Oil prices inched up five cents to $40.88 U.S. a barrel.

Gold prices faded $5.90 to $1,920.50.