Finance News

Inventory futures rise barely as Wall Road tries to construct on the week of earnings

A jogger passes the New York Stock Exchange (NYSE) in New York on June 17, 2020.

Michael Nagel | Bloomberg | Getty Images

US equity futures traded slightly higher on Sunday night as Wall Street tried to build on the momentum of solid performance over the past week.

Dow Jones Industrial Average futures rose 42 points, or 0.2%. S&P 500 futures rose 0.1% and Nasdaq 100 futures 0.4%.

Wall Street posted strong gains after a shortened week of trading due to the July 4th holiday. The Dow and S&P 500 rose 3.3% and 4% respectively last week, and the Nasdaq gained 4.6% over that time.

The market also had its best quarterly performance in decades last week. The Dow gained more than 17% in the second quarter, while the S & P 500 gained almost 20% during this period. The Nasdaq was up 30.6% in the quarter.

Sunday's gains, however, are being held in check as coronavirus cases continue to grow worldwide, raising concerns about the global economy and its recovery from the pandemic.

The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed within 24 hours, a record. At the regional level, the largest increase was in America, where nearly 130,000 new cases were confirmed.

In the US, Florida and Texas reported daily record highs of 11,445 and 8,258, respectively. The Mayor of Houston, Sylvester Turner, said the outbreak was on its way to overwhelm the city's hospitals in two weeks. The Mayor of Miami, Francis Suarez, told ABC this weekend: "It is clear that growth is exponential at this point."

Data compiled by Johns Hopkins University showed that more than 45,000 new cases were confirmed in the U.S. on Saturday.

"We are currently seeing an increase in COVID-19 cases, particularly in the Sunbelt countries, which have pioneered the relaxation of restrictions on social distance to facilitate the reopening of their economies," said Marc Chaikin, CEO of Chaikin Analytics, in a post.

"This reopening momentum has been stopped by the surge in COVID-19 cases, and the temptation to translate it into a bearish outlook for stocks is great," he added. "However, deaths have not increased, but are a lagging indicator. The next two weeks will be critical for a number of reasons."

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