Dow Makes Another Try at Record

Futures on major indexes rebounded on Tuesday a day after worries about slowing economic growth kept investors on edge and knocked stocks lower.

Futures for the Dow Jones Industrials surged 133 points, or 0.4%, to 34,854. The blue-chip Dow climbed 250 points to touch an all-time high at one point on Monday, but ended the session nearly 100 points lower. It closed about 1% from a record Monday.

Futures for the S&P 500 gained 14 points, or 0.3%, to 4,393.75.

Futures for the NASDAQ Composite Index jumped 23.25 points, or 0.2%, to 14,976.

The spread of the delta coronavirus variant continued to keep investors on edge. The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized COVID-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.

However, on the positive side the U.S. reached the 70% COVID vaccine milestone, according to the CDC.

Stocks that would benefit most from an economic reopening and more widespread vaccination gained in pre-market trading Tuesday. Shares of most airlines were higher in pre-market trading, along with Carnival Corp.

Tesla was set for more gains on Tuesday following a 3% pop on Monday.

Meanwhile, the second-quarter earnings season continues with Under Armour shares rising in premarket trading after the company beat estimates on the top and bottom lines. Shares of Eli Lilly were lower after the drugmaker’s earnings came in lighter than expect. Clorox’s stock was also under pressure after a disappointing report.

Through Friday, 88% of S&P 500 companies had reported a positive earnings surprise for the second quarter, which will mark the highest percentage since FactSet began tracking this metric in 2008.

Shares of Simon Property gained in after hours trading Monday after the mall owner said sales bounced back to pre-pandemic levels, up 80% from a year ago. It also reported a relatively high occupancy rate.

Investors are closely monitoring progress in Washington as lawmakers move toward a bipartisan infrastructure bill that would devote $550 billion to U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber before a planned month-long recess starting Aug. 9.

Overseas, in Japan, the Nikkei 225 index dipped 0.5%, while in Hong Kong, the Hang Seng index gave back 0.2%,

Oil prices subsided 41 cents to $70.85 U.S. a barrel.

Gold prices backtracked $9.70 to $1,812.50 U.S. a pound.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire