U.S. stock-market futures on Monday rose as Wall Street equities looked to add to a rally toward records for the Nasdaq Composite that concluded trade last week on the back of improving economic data in the face of a viral outbreak.
How are benchmarks faring?
Futures for the Dow Jones Industrial Average US:YMM20 US:YM00 were rising 190 points, or 0.7%, at 27,262, those for the S&P 500 index US:ESM20 US:ES00 were rising 15.20 points, or 0.5%, at 3,202, while Nasdaq-100 futures US:NQM20 US:NQ00 were inching 12 points, or 0.1%, at 9,820.50.
On Friday, the Nasdaq Composite Index US:COMP set a record intraday high at 9,842.49 before pulling back to end 3.1 points shy of its Feb. 19 record closing high. The Nasdaq-100 US:NDX, meanwhile, rose 194.73 points, or 2% to 9,824.39, marking a record finish.
For the week, the Dow US:DJIA finished 6.8% higher, the S&P 500 US:SPX gained 4.9%, while the Nasdaq advanced 3.3% and the Nasdaq-100 rose 2.8%.
What’s driving the market?
The Federal Reserve is set to release its updated policy statement on Wednesday and its first set of economic projections since December. Although investors aren’t expecting the central bank to dial back rates, which currently stand at a range of 0% and 0.25%, investors may be eager to garner clues from policy makers after Friday’s jobs report produced a stunning 2.5 million increase in payrolls in May, when economists had expected as many as 9 million jobs lost in the month, amid coronavirus-related closures.
“Following a massive upside surprise from the May employment report, the focus will shift to the Fed’s interpretation of the latest data and potential implications for monetary policy when the FOMC convenes this Wednesday,” wrote analysts at Deutsche Bank, led by Brett Ryan, senior U.S. economist, in a research note dated June 5.
“We expect the June meeting to mark a first step away from a focus on crisis prevention toward more traditional goals of providing accommodation to support the recovery,” the researchers wrote.
Friday data showed that the U.S. May unemployment rate fell to 13.3%from 14.7%. Economists polled by MarketWatch had predicted the loss of 7.25 million jobs and a May unemployment rate of 19%.
Markets have been kept afloat and have even made significant traction higher, despite civil unrest and evidence of rising Sino-American trade tensions, on the back of trillions of dollars in support from the U.S. government and the Fed, whose balance sheet has ballooned to $7.21 trillion from around $4 trillion in March.
Investors have also been heartened by efforts to reopen the U.S. economy in the aftermath of pandemic-related closures. Reopening plans are in various stages in all 50 U.S. states. New York City, one of the regions hardest hit by coronavirus, was set to launch Monday the first phase of its reopening, which includes the restart of construction and limited retail operations.
Still, the Wall Street Journal reported that some states, California, Utah, Arizona, North Carolina, Florida, Arkansas and Texas, among others, are reporting an increase in the number of infections after having lifted restriction, even as the overall case tally is sliding in the U.S., citing data compiled by Johns Hopkins University.
As of early Monday, there were more than 7 million confirmed cases of the deadly infection globally, with 1.9 42 million infected in the U.S., according to the data.
Which stocks were in focus?
- PG&E Corp. US:PCG Shares of sank in premarket trading Monday, after the San Francisco-based utility announced an equity investment of a total of $3.25 billion by investors including Appaloosa, Third Point LLC, Fidelity Management & Research Co. LLC and Zimmer Partners at a discount to current prices.
How are other assets trading?
Oil prices climbed US:CL Monday as OPEC+ agreed on Saturday to extend a pact to ease global output. West Texas Intermediate Crude was trading 27 cents, or 0.7% at $39.82 a barrel a barrel on the New York Mercantile Exchange.
In precious metals, August gold US:GCM20 on Comex up $14.90, or 0.9%, at $1,697.90 an ounce, after finishing Friday trade at its lowest level since April 3.
The 10-year Treasury note yield BX:TMUBMUSD10Y added was little changed at 0.900%, following Friday’s surprising jobs report. Bond prices move in the opposite direction of yields.
The greenback edged higher against its major rivals, but was mostly flat, as gauged by the ICE U.S. Dollar index US:DXY.
In global equities, the Stoxx Europe 600 index XX:SXXP traded 0.3%, while the FTSE 100 index UK:UKX rose 0.2%.
In Asia, Japan’s Nikkei JP:NIK closed 1,4% higher, the China CSI 300 XX:000300 finished 0.5% higher and Hong Kong’s Hang Seng Index HK:HSI finished flat but in positive territory. South Korea’s Kospi index KR:180721 gained 0.1%.
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June 08, 2020 at 05:45PM
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Dow futures rise as stock market aims to add to rally headed into Fed week - MarketWatch
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