By Yun Li and Fred Imbert, CNBC–
Stock futures rose in early morning trading Tuesday as investors remained focused on the reopening of the U.S. economy.
Futures on the Dow Jones Industrial Average climbed 202 points, implying a Tuesday opening gain of around 135 points. S&P 500 and Nasdaq futures also pointed to a positive Tuesday start for the two indexes.
Meanwhile, New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining, suggesting the state is on “the other side of the mountain.” However, he added that officials are not seeing as steep of a decline as they hoped.
The overnight moves followed Monday’s modest gains on Wall Street. The strength in the biggest U.S. technology companies including Microsoft, Apple, Amazon and Netflix lifted the broad market out of negative territory. The S&P 500 closed the session 0.4% higher, while the Nasdaq jumped 1.2%.
“Megacaps mask underlying rally fragility,” Ken Johnson, investment strategy analyst at Wells Fargo, said in a note on Monday. “This concentration raises concerns about the rally’s long-term health and durability as it suggests that ample liquidity, rather than broadly improving fundamentals, may be fueling it.”
On Monday, airline stocks suffered a big sell-off with Delta, United, American Airlines all dropping more than 5%. The decline came after Warren Buffett’s said over the weekend that his Berkshire Hathaway dumped the entirety of its stakes in the sector due to the fallout from the pandemic.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
Leave A Comment
You must be logged in to post a comment.