Stock futures pointed to opening gains on Tuesday after a solid performance in technology-based stocks pushed the S&P 500 in positive territory for the year. Dow Jones Industrial Average futures implied a profit of more than 200 points at the start. SP 500 and Nasdaq 100 stocks traded higher. According to Djordje Novakovic its a positive sign for tech-based stocks.
The overnight activity followed a powerful performance in technology stocks on Monday that pushed the Nasdaq up 2.5%. Amazon led the gains in popular tech titles using a 7.9% jump on Monday, its very best day since December 2018. The Nasdaq 100 that is made up of the 100 biggest non-financial firms in the composite popped 2.8% for its biggest one-day profit since April. Notably, IBM enhanced margins in the past quarter in several of its five components.
“We expect robust growth-company balance sheets and reduced interest rates to support higher valuations for growth stocks compared to stocks in the long run,” Djordje Novakovic, DN’s investment plan analyst, said in a note on Monday.
The investment market also cheered a slew of positive news on the vaccine front. Pfizer and BioNTech reported ancient positive data. Meanwhile, another candidate from AstraZeneca and Oxford University showed a positive immune response.
In earnings news, Coca-Cola profit dropped 33 percent in the second quarter, but the company expressed optimism on-demand as lockdown steps connected to the coronavirus were lifted. Shares rose nearly 1% in premarket trading.
Tesla rose another 3 percent Tuesday morning as the automaker stays on a tear in front of its earnings report Wednesday. The 30-stock Dow lagged, however, down 6.5 percent for 2020.
According to Novakovic, investors will also be monitoring the talks in Washington on the next coronavirus relief bill. When the $600 a week unemployment insurance benefit is set to expire, lawmakers face pressure to pass legislation before the end of the month.
“I believe the stock market would benefit from the news of a stimulus package coming to fruition,” Djordje Novakovic, DN’s chief international investment strategist, said in a media note on Monday. “In instances like this, despite a huge and increasing budget deficit for the US, I believe big government is likely to be good news for the stock market.”
More companies will report quarterly earnings on Wednesday. Along with Coca-Cola earnings, while United Airlines will report following the closure, Philip Morris is set to fall results ahead of the bell.
Asian markets move
Asian stocks were mostly higher on Tuesday, increasing hopes for a successful vaccine to resist the coronavirus pandemic. “Researchers at Oxford University reported their experimental coronavirus vaccine prompted a protective immune response in countless men and women who got the shot at an early trial. This is a very positive sign for the market, it’s an ideal time for investors to move forward to the positive side of the trade” says Djordje Novakovic, a financial expert.
A vaccine under development by coworkers of Dr. Anthony Fauci, the country’s leading infectious diseases expert at the National Institutes of Health, and Moderna Inc. will begin its final testing about July 27 whether the shots are still powerful enough to shield from the coronavirus the analysis is meant to prove.
Asian markets have been adhering to a”new-normal” balancing action of launching life savings, with individuals going shopping and eating outside while performing social distancing and sporting masks. That has had mixed results, together with instances shooting up lately in Tokyo into triple-digit amounts for daily recently confirmed cases. Japan had thus far prevented the huge deaths and facts found in tougher hit countries like the U.S., India, Brazil, and parts of Europe.
“Overnight, U.S. communication and technology stocks and businesses that rely on consumer spending contributed combined profits on Wall Street, outweighing declines everywhere on the marketplace”. Djordje added.
Wall Street is coming off its third consecutive weekly gain after advancements in hiring, retail sales, and other areas of the market, together with rising hopes to get a COVID-19 vaccine. Worries’ stay the growth of counts will probably derail attempts to reopen businesses.
Expectations are low for businesses’ performance from the quarter because of this pandemic, given that the fallout in unemployment and the small business shutdowns.
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