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U.S. stock-index futures rose Tuesday, with analysts citing progress toward easing coronavirus lockdowns as investors weighed earnings from blue-chip companies.
Equities were looking past weakness in the oil market, with the U.S. benchmark down more than 7% at $11.85 a barrel after a 25% swoon on Monday, reflecting a growing global glut and a tightening storage picture.
What are major indexes doing?
Futures on the Dow Jones Industrial Average YM00, +1.42% rose 312 points, or 1.3%, to 24,311, while S&P 500 futures ES00, +1.29% advanced 33.10 points, or 1.2%, to 2,902. Nasdaq-100 futures NQ00, +1.17% were up 99.75 points, or 1.1%, to 8,924.
Stocks kicked off the week on a positive note Monday, with the Dow DJIA, +1.50% rising 358.51 points or 1.5%, to close at 24,133.78, extending the blue-chip gauge’s win streak to four sessions. The S&P SPX, +1.47% advanced 41.74 points or 1.5%, finishing at 2,878.48. The Nasdaq Composite COMP, +1.10% ended at 8,730.16, gaining 95.64 points or 1.1%.
What’s driving the market?
“The current divergence between equity markets and oil markets probably has more to do with the prospect of further stimulus measures from central banks, after the Bank of Japan extended the scope of its bond buying program yesterday, and ahead of the start of this week’s meetings of the U.S. Federal Reserve, which starts today, and the European Central Bank who meet on Thursday,” said Michael Hewson, chief market analyst at CMC Markets, in a note.
The Fed late Monday announced it would extend its program to buy bonds directly from states and cities to include more local communities.
The Fed will conclude its policy meeting Wednesday, followed by a briefing from Chairman Jerome Powell, that economists expect will be geared toward reassuring investors and the public that it has the largest economic downturn since the Great Depression under control. Since the beginning of March, the Fed has cut interest rates zero and increased the assets on its balance sheet by more than $2 trillion since the beginning of the crisis to a record $6.6 trillion.
See:The Fed has a simple goal this week — project confidence in the face of the unknown
The global case tally for COVID-19 climbed to 3.05 million on Monday, according to data aggregated by Johns Hopkins University. The death toll rose to 211,350.
Several European countries have started or have announced plans to gradually reopen their economies. Some U.S. states have also started to take action, though analysts noted worries that a premature reopening could risk a renewed wave of infections.
The economic calendar features advance trade in gods for April at 8:30 a.m. Eastern, while the Case-Shiller home price index for February is due at 9 a.m. Eastern. An April consumer confidence reading is set for 10 a.m.
Which companies are in focus?
- Shares of PepsiCo Inc. PEP, +0.07% rose 0. 9% in premarket trade after the beverage giant topped Wall Street expectations for sales but missed on earnings, while withdrawing its financial guidance for the rest of the year due to the COVID-19 pandemic.
- 3M Co. MMM, +4.52% shares were up ahead of the opening ball after it announced earnings and sales that beat expectations, while withdrawing its outlook for the full year.
- Shares of Caterpillar Inc. CAT, +1.01% were up ahead of the bell after beating estimates for profit, while sales fell short.
- Shares of pharmaceutical giant Merck & Co. Inc. MRK, +3.13% were slightly lower in premarket trade after it reported results that topped sales and earnings forecasts, but lowered its 2020 outlook.
- Pfizer Inc. PFE, +2.54% stock was up 2% in premarket action after topping earnings and sales forecasts.
