Finance News

Inventory futures rise as merchants weigh rising coronavirus instances

A passenger wears a protective mask at the Wall Street subway station in New York on Monday, March 30, 2020.

Michael Nagle | Bloomberg via Getty Images

U.S. stock futures rose on Sunday evening as the number of newly confirmed coronavirus cases continues to rise while lawmakers remain at an impasse over a new economic deal.

The Dow Jones Industrial Average futures rose 131 points, or 0.5%. The futures on the S&P 500 and Nasdaq 100 rose 0.5% and 0.7%, respectively.

A CNBC analysis of the Johns Hopkins University data found that Covid-19 cases increased 5% or more in 38 states on Friday. Nationwide, the daily average of cases has increased from week to week by more than 16% to almost 55,000. New coronavirus infections in Europe are increasing by around 97,000 per day compared to the previous week, an increase of 44%.

In Washington, the office of House Spokeswoman Nancy Pelosi said Saturday night that she was giving the Trump administration 48 hours to finalize an aid agreement ahead of the November 3rd election. Pelosi and Treasury Secretary Steven Mnuchin continued their discussions over the weekend. They agreed to speak again on Monday.

"The 48 only refers to whether we want to make it before the election, which we do," Pelosi told ABC's This Week on Sunday. "We tell them we have to freeze the design for some of these things – do we deal with it or not and what is the language like? I'm optimistic because we've been going back and forth on all of this."

Pelosi's comments came as hope among market experts that an agreement could be reached before the dwindling elections. This, along with the apparent new wave of coronavirus infections, added to a troubled trade last week.

The S&P 500 and Dow fell for three days last week before closing a little higher on Friday. The Nasdaq Composite posted its first four-day loss since September.

"The many countercurrents that we have been concerned about over the past few weeks remain pervasive," said Sherif Hamid, strategist at Jefferies, in a note. "The US elections are imminent, fiscal stimulus remains an important potential catalyst in the short term, and virus developments remain critical to the longer term outlook."

"There is a very good chance that a lot will happen in the next few weeks, and the general macro picture could therefore change quite massively depending on developments on all of these fronts," added Hamid.

In terms of earnings, IBM is expected to release its latest quarterly results on the Monday after the bell. In the meantime, Federal Reserve Chairman Jerome Powell is due to speak on Monday morning.

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