5 things to know before the stock market opens on Tuesday August 10



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Here are the most important news, trends and analysis investors need to start their trading day:

1. Stock futures are stable after falling Dow and S&P 500 records

Traders work on the New York Stock Exchange (NYSE) in New York, August 3, 2021.

Andrew Kelly | Reuters

U.S. equity futures were little changed on Tuesday, a day after the Dow Jones Industrial Average and S&P 500 pulled back from all-time highs. Dow futures traded just 23 points lower, or 0.1%. S&P 500 futures were down slightly and Nasdaq 100 futures were up 0.1%. The tight trading range comes as traders watch a recent spike in Covid cases in the United States, as the highly contagious delta variant spreads across the country. The moves also come as the corporate earnings season draws to a close.

2. Senate vote on future infrastructure

Senate Majority Leader Chuck Schumer (D-NY) speaks to reporters about the bipartisan infrastructure bill at the U.S. Capitol in Washington, July 28, 2021.

Élisabeth Frantz | Reuters

The Senate is expected to vote on a $ 1,000 billion bipartisan infrastructure plan Tuesday at 11 a.m. ET. The bill – which includes $ 550 billion in spending to improve the country’s roads, bridges, airports, and waterways – has been eagerly awaited by investors as it could give the U.S. economy a boost in its post-pandemic recovery. The Senate will then move on to passing a $ 3.5 trillion budget resolution, Majority Leader Chuck Schumer said on Monday. The spending plan includes investments in paid vacation, childcare and green energy.

3. AMC posts lower than expected loss, stocks jump

Pedestrians walk past an AMC theater in New York City.

Scott Mlyn | CNBC

AMC shares jumped more than 7% in the pre-market thanks to the better-than-expected second quarter results of the moving theater chain. The company recorded a loss of 71 cents per share on revenue of $ 444.7 million. Analysts had expected a loss of 91 cents a share on revenue of $ 382.1 million, according to Refinitiv. AMC also unveiled a deal with Warner Bros. to present the entire 2022 of the studio in theaters for 45 days. However, CEO Adam Aron said AMC was “out of the woods yet”. AMC stocks have benefited massively from the equity craze even this year, jumping nearly 1,500% in 2021.

4. China’s Tighter COVID Restrictions Could Slow Global Economy, Strategist Says

A medical worker in protective gear takes a swab from a resident during a city-wide nucleic acid test following new cases of coronavirus disease (COVID-19) in Wuhan, Hubei province, China, August 3, 2021.

Limon | Reuters

The global economy could face headwinds as China tightens its Covid security measures to mitigate an increase in daily cases, strategist David Roche told CNBC’s “Street Signs Asia”. “I think China is emerging from its great history of recovering from Covid, which of course is ahead of the world… and is now converging with a long-term growth trajectory that is well, far below what people have become accustomed to China, “said Roche, president and global strategist at Independent Strategy. China’s National Health Commission on Monday reported 143 new cases of Covid in mainland China – the highest in one day since January – according to Reuters.

5. Newsom could face a tough recall election battle

California Governor Gavin Newsom speaks at a press conference regarding the San Jose railroad shooting shooting in San Jose, Calif., May 26, 2021.

Amy Osborne | AFP | Getty Images

California Governor Gavin Newsom could face an uphill battle to win a recall election, as the state rolls out new Covid-related restrictions and Democratic supporters become complacent. “Democrats haven’t had an emergency, and that’s Newsom’s biggest challenge at this point,” Democratic consultant Michael Soneff said. Newsom has also been criticized for its handling of the pandemic in California, where cases have increased, particularly from the Republican opposition.

– Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.

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