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On Tuesday, stock futures continued in trading overnight as investors awaited the inauguration of President-elect Joe Biden.
Futures contracts on the Dow Jones Industrial Average were flat. S&P 500 futures edged up 0.1% and Nasdaq 100 futures edged up 0.3%.
Netflix climbed more than 10% in extended trading after the company reported strong growth in subscriber numbers and said it was considering repurchasing shares. Netflix easily beat estimates for global net paid subscriber additions, bringing in 8.5 million versus 6.47 million analysts forecast.
Biden will succeed President Donald Trump as the 46th President of the United States shortly after noon ET. His inaugural address will focus on the need to bring the country together in the wake of a violent riot on Capitol Hill and with extreme partisan spirit in Congress.
Investors will also be on the lookout for any further information on Biden’s $ 1.9 trillion Covid-19 relief plan unveiled last week. On Tuesday, Janet Yellen, Biden’s nominee for Treasury secretary, endorsed increased aid spending and urged lawmakers to “act big.”
“Everything else could take a back seat to events in Washington as investors anticipate big policy and outlook shifts from a new administration,” TD Ameritrade chief market strategist said, JJ Kinahan.
Wall Street started the week with modest gains. The Dow Jones rose more than 100 points on Tuesday, while the S&P 500 gained 0.8%, breaking a two-day losing streak. The Nasdaq Composite rebounded 1.5% as major tech stocks rebounded from steep losses last week.
Biden’s stimulus proposal calls for direct payments of $ 1,400 to most Americans, as well as additional unemployment benefits as well as state and local aid. He also announced a broad plan to fight the pandemic in the United States, which includes a nationwide vaccination campaign.
The United States failed to meet its goal of vaccinating 20 million people by the end of last year. While the Trump administration’s Operation Warp Speed delivered more than 31.1 million doses across the country, only 12.3 million people have been vaccinated.
“I think there is a very bright light at the end of the tunnel. We just have to get through the next few months,” said Kristina Hooper, chief global market strategist for Invesco. “I expect the markets to continue to move in hopes of a robust recovery later in 2021, when vaccines are widely distributed.”
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