Stock futures are flat after S&P 500 hits new high



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U.S. equity futures were flat in overnight trading on Tuesday, after the S&P 500 hit its highest level ever, wiping out all losses from the coronavirus sale.

Dow futures rose 18 points. The S&P 500 and Nasdaq 100 futures contracts gained 0.04% and 0.05% respectively.

On Tuesday, the S&P 500 hit its highest level ever, recouping all coronavirus-related losses in the index. The 500-stock average rose 0.2% to a record close of 3,389.78. It also traded above its February 19 intraday high of 3,393.52 earlier in the trading day. The S&P rallied more than 54% from its March low, ending the shortest bear market in US history.

“Market gains were led by mega-channelized tech names characterized by the Nasdaq, with value stocks, small-cap stocks, foreign developed markets and emerging markets lagging far behind,” said Marc Odo , portfolio manager at Swan Global Investments, at CNBC. .

The Nasdaq Composite also broke a record Tuesday after gaining 0.7%, helped by a gain of 4% on Amazon and nearly 2% on Netflix. The Dow Jones Industrial Average plunged 66 points.

“Reaching a new all-time high may be a quickly forgotten slowdown in an ongoing new bull market, but if it is not substantially passed in the coming weeks, it could also prove to be a nagging glass ceiling that will continue to grow. perpetuating those fears. is just a big bear market rally, “Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC.” Bulls need to be wondering if the stock market can finally beat its fundamentals while the bears are forced to wonder if they are too underweight in what might just be the start of a new bull market. “

Retailer shares topped the major average gains on Tuesday, despite better-than-expected quarterly results from Walmart and Home Depot. Kohl’s plunged more than 14% after the company offered grim prospects ahead of the all-important holiday season.

Retail profits continue Wednesday with reports from big box retailer Target and home improvement firm Lowe’s ahead of the opening bell. TJX Companies also reports Wednesday morning. Nvidia is releasing quarterly results after market close on Wednesday.

Investors are still considering a second Washington coronavirus stimulus bill. Treasury Secretary Steven Mnuchin criticized Democratic leaders for being stubborn and unwilling to discuss a small relief package on Tuesday; However, Politico reported that House Speaker Nancy Pelosi said she was willing to curtail some requests to get agreement on the bill.

The Federal Open Market Committee will release the minutes of its June meeting on Wednesday at 2 p.m. ET.

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