Finance News

Inventory futures rise earlier than the massive week of earnings, with the concentrate on the coronavirus stimulus

A man wearing a mask walks past Wall Street in New York City on the New York Stock Exchange (NYSE) on March 17, 2020.

Johannes Eisele | AFP | Getty Images

US equity futures rose on Sunday evening as investors prepared for a big week of corporate earnings and lawmakers continued negotiations on coronavirus stimuli.

Dow Jones Industrial Average futures were trading at 43 points, or 0.2%. S&P 500 futures grew by 0.1% with Nasdaq 100 futures.

McDonald & # 39; s, Pfizer, Alphabet, Apple and AMD are among the companies that will release their latest quarterly numbers this week.

By Friday close, 128 S&P 500 companies had reported profits, with 81% refinitiv exceeding analysts' expectations. Overall, however, the S&P 500's profits fell more than 40% year over year as the coronavirus pandemic severely impacted corporate earnings.

"Stock prices have risen despite analyst consensus on expected earnings estimates having dropped," said Ed Yardeni, chief investment strategist at Yardeni Research. "These estimates have started to show signs of bottoming out in the past few weeks. However, a recovery could be dampened or even stopped if the number of COVID-19 cases continues to increase and governors slow down or reverse the lifting of restrictions."

Traders also turned to Washington when lawmakers tried to push another corona virus stimulus package.

Treasury Secretary Steven Mnuchin said on Sunday that the Republicans had completed a bill of approximately $ 1 trillion in coronavirus aid. Mnuchin added that he hoped that the proposal would find bipartisan support.

However, Jefferie's chief economist Aneta Markowska warned that "there is still a huge gap between the GOP and the Democrats, particularly in terms of unemployment benefits and state and local state aid. The gap is likely to take more than a week to close, which means an agreement will probably not be reached before July 31st. "

White House economic advisor Larry Kudlow highlighted some of the measures included in the GOP proposal and said, "A check is coming for $ 1,200 that will be part of the new package."

Wall Street had been through a week of defeat when stocks of major technology companies struggled and tensions between the US and China increased. The Dow and S & P 500 each achieved a three-week winning streak. The Nasdaq, meanwhile, had its first weekly losses since May.

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