An artist named Theodore Tsinias, who wrapped himself next to the Charging Bull on May 25, 2020 in Lower Manhattan, New York City, USA, to draw attention to the behavior of the world during the Covid-19 pandemic.
Tayfun Coskin | Anadolu agency | Getty Images
Stock futures remained unchanged overnight on Monday after strong technology stock performance drove the S&P 500 into positive territory for the year.
The futures on the Dow Jones Industrial Average fell about 10 points, while the futures on the S&P 500 and the Nasdaq 100 hardly changed.
The overnight action followed strong technology equity performance pushing the Nasdaq up 2.5%. Amazon led growth in popular tech names with a 7.9% increase on Monday, the best day since December 2018. The Nasdaq 100, which is made up of the association's 100 largest non-financial companies, rose 2 on its largest day .8% profit since April.
IBM grew 4.7% in expanded trading after the company posted better-than-expected earnings in the second quarter. In particular, IBM improved its gross margin in three of its five units last quarter.
"We expect robust growth company balance sheets and low interest rates to support higher valuations for growth stocks than for value stocks in the short term," Ken Johnson, Wells Fargo's investment strategy analyst, said in a statement Monday.
The market also welcomed a series of positive news on the vaccine front. Pfizer and BioNTech reported early positive data on a common coronavirus vaccine. Another candidate from Oxford University and AstraZeneca showed a positive immune response in an early study.
With Monday's earnings on Wall Street, the S&P 500 went green for 2020, up 0.6% year over year, while Nasdaq rose 20% this year. However, the 30-share Dow lagged 6.5% until 2020.
Investors are also monitoring talks in Washington over the next Coronavirus Relief Bill. Legislators are under pressure to pass laws before the end of the month when the weekly unemployment benefit ends at $ 600.
"I think the stock market would benefit from the news that an economic stimulus package would come into effect," said Kristina Hooper, Invesco's chief strategist for global markets, on Monday in a note. "In times like these, I believe that despite a massive and growing budget deficit for the United States, a large government is probably good news for the stock market."
More companies will report quarterly results on Wednesday. Coca-Cola and Philip Morris will drop the results in front of the bell, while United Airlines will report after the conclusion.
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