Inventory futures fall as Wall Avenue prepares for the ultimate full week earlier than the election
A man walks a dog in the shade from the midday sun past the New York Stock Exchange (NYSE) building in Manhattan during hot weather in New York City, New York, the United States, August 11, 2020.
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Futures, which were pegged to major US stock benchmarks, traded lower overnight on Sunday as Wall Street entered the last full week of trading prior to election day.
Dow Jones Industrial Average futures fell about 100 points, indicating a 140 point loss when it opened on Monday. The S&P 500 futures and the Nasdaq 100 futures each fell 0.4%.
This week marks the last week of October and the last trading period before November 3rd. Key averages are on the way to modest earnings for the month, with the S&P 500 and Nasdaq both up more than 3% so far. The 30-share Dow is up about 2% this month.
“Given what we’ve seen in the equity markets over the past two weeks, it seems to us that some serious new news is needed to cause a significant decline over the next week and a half,” said Matt Maley, chief market strategist at Miller Tobacco said in a note on Sunday.
Former Vice President Joe Biden has a sizable lead over President Donald Trump in national polls, though the gap has narrowed slightly recently.
Traders will be on the lookout for a range of big tech and blue-chip corporate earnings as well as key economic data this week. Apple, Facebook, Alphabet, Amazon, Boeing, and Caterpillar all report later in the week, while the first look at third-quarter GDP is due Thursday.
The Dow and S&P 500 have seen their first week of losses in four years as talks dragged on over the next coronavirus stimulus package. Treasury Secretary Steven Mnuchin said Friday that House spokeswoman Nancy Pelosi was “still entrenched” on a number of issues related to the relief agreement.
Meanwhile, the U.S. has reported a record number of new coronavirus cases in outbreaks in the Sun Belt states. The country recorded more than 83,000 new infections on both Friday and Saturday, beating the latest record of around 77,300 cases on July 16, according to Johns Hopkins University.
The benchmark 10-year government bond yield rose to a four-month high of 0.84% last week, sparking a rally in bank stocks.
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