US equity futures recover from negative territory Tuesday morning

NEW YORK – U.S. equity futures recovered from negative territory on Tuesday hours before the opening bell after ending mixed on Monday as a deluge of corporate earnings reports was expected to arrive this week.

The S&P 500 rose 0.4% to 3,855.36, as gains in influential big tech stocks offset losses in most companies. The Dow Jones Industrial Average dipped 0.1% to 30,960.00. The Nasdaq composite, which is packed with tech stocks, rose 0.7% to 13,635.99 and another record high.

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The Russell 2000 index for small stocks fell 0.3% to 2,163.27. The 10-year Treasury yield fell to 1.03% from 1.07% on Friday night.

Besides Apple, more than 100 S&P 500 companies are expected to tell investors this week how they fared over the last three months of 2020. Among them, American Express, Johnson & Johnson, 3M, AT&T and Tesla.

U.S. equity futures were recovering from negative territory on Tuesday hours before the opening bell after ending mixed on Monday as a deluge of corporate earnings reports was expected to arrive this week. (Colin Ziemer / New York Stock Exchange via AP)

Overall, analysts expect companies in the S&P 500 to say their fourth quarter profit fell 5% from a year ago. That’s a smaller drop than the 9.4% they expected earlier this month, according to FactSet.

President Joe Biden has proposed a $ 1.9 trillion plan to send $ 1400 to most Americans and further support the economy. But his party only holds the smallest possible majority in the Senate, making approval uncertain. Several Republicans have already expressed their opposition to parts of the plan.

The coronavirus pandemic is also getting worse and doing more damage day by day. A United Nations agency said on Monday that four times more jobs were lost last year than in 2009, during the global financial crisis.

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The Federal Reserve will begin a two-day interest rate policy meeting on Tuesday, and it is generally expected to keep the accelerator on the floor on its stimulus for the economy and markets. He announced his intention to keep interest rates low even if inflation exceeds its target of 2%.

Meanwhile, traders are keeping a cautious eye on the rise in coronavirus infections in various countries and a bumpy rollout of vaccinations in the U.S. The spread of variants believed to be more easily transmitted and which could be less effectively targeted by existing vaccines adds to the alarm.

Vaccine maker Moderna said Monday it would study whether a booster vaccine would be needed to protect against variants of the coronavirus, “out of caution.”

“These days, the mood of the market is determined either by the hopes that the COVID vaccine would mark the end of the biggest economic downturn in our lives, or by the stimulus hoping to keep our heads above water. Yesterday, both hopes were dashed, ”Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a comment.

Meanwhile, the Japanese Nikkei 225 index fell 1% to 28,546.18, while the Shanghai Composite Index fell 1.5% to 3,569.43. South Korea’s Kospi lost 2.1% to 3,140.31. Shares also fell in Southeast Asia.

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The Australian and Indian markets were closed for the holidays.

In other trading on Tuesday, benchmark US crude oil fell 37 cents to $ 52.40 a barrel in electronic trading on the New York Mercantile Exchange. It gained 50 cents to $ 52.77 a barrel on Monday.

Brent, the international standard, fell 40 cents to $ 55.28 a barrel.

The US dollar slipped to 103.74 Japanese yen from 103.76 yen on Monday night. The euro fell to $ 1.2129 from $ 1.2141.