Stocks – U.S. Futures Head Lower as Stimulus Bill Falters

By Peter Nurse    

Investing.com – U.S. stocks are set to open lower Monday, as investors fret about the ability of policymakers to come up with stimulus policies to shore up economies against the coronavirus pandemic.

At 6:50 AM ET (1050 GMT), futures for the traded 50 points, or 2.2%, lower, futures for the down 128 points, or 1.8%, while the futures contract fell 203 points, or 2.3%. 

Late Sunday, U.S. politicians failed to agree on the terms of a funding package of more than $1 trillion, resulting in it not getting enough votes in a key Senate procedural vote.

This occurred as President Donald Trump pledged to send in the national guard into Washington, California and New York, as these states were declared disaster zones. 

New York has recorded close to 17,000 confirmed cases of the Covid-19 virus and 153 deaths late Sunday; Washington has more than 1,700 confirmed cases; California more than 1,700. 

The U.S. unemployment rate could hit 30% in the coming months, according to Federal Reserve Bank of St. Louis President James Bullard, as the pandemic hits all kinds of economic activity. This would be worse than during the Great Depression.

In corporate news, Marriott International (NASDAQ:) will be in focus after announcing plans to grant leave to thousands of corporate employees at its headquarters and around the world.

Apple (NASDAQ:) has dropped a two-device limit on online purchases of iPhones, a check of its web stores showed on Monday, according to Reuters, just days after changing the checkout procedure amid the coronavirus pandemic.

Boeing (NYSE:) announced it was suspending its dividend and stock buyback program, against a backdrop of Democratic resistance to the bailout provisions for the aviation industry in the Senate’s bill. Additionally, Goldman Sachs (NYSE:) upgraded its investment stance on the planemaker to buy from neutral, saying the company will recover on “the back of its strong balance sheet and a rebound in air travel demand” after the coronavirus pandemic is contained.

Elsewhere, the recent positive tone in oil prices has disappeared after hopes of a deal to stabilise oil prices by cutting supply dissipated.

At 6:50 AM ET (1050 GMT), futures traded 0.5% lower at $22.52 a barrel. The international benchmark contract fell 4.3% to $25.82.

Additionally, rose 0.9% to $1,497.30/oz, while traded at $1.0678, down 0.1%.

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