Inventory futures flat after break within the document rally
US stock futures were unchanged in overnight trading on Tuesday as investors digested the recent record rally in stocks.
Dow futures fell 21 points. The futures for the S&P 500 and the Nasdaq-100 fell 0.04% and 0.03%, respectively.
On Tuesday, the Dow Jones Industrial Average fell more than 167 points, which was dragged down by Walgreens, Home Depot and Walmart. The S&P 500 lost 0.5%. Tuesday’s session marked the first time in three days that the Dow and S&P 500 fell after their record closed on Monday.
The Nasdaq Composite was the relative outperformer, falling just 0.2%. Tesla shares fell more than 8% after S&P Dow Jones Indices announced the electric vehicle company would join the S&P 500.
Small caps continued to outperform on Tuesday. The Russell 2000 gained 0.37% and closed on another record.
“For the most part, the economy has recovered faster than many expected, as consumer spending held up reasonably well during the crisis. Much of that can be seen in the consumption habits that the pandemic led consumers to cut down on to avert. ” service-oriented products and more commodity products, “said Charlie Ripley, senior investment strategist at Allianz Investment Management, in a note.
“While this has been beneficial to the economy as a whole, it has produced a forked recovery as some economic sectors remain extremely depressed,” he added.
Stocks are having a strong month on positive news from two U.S. drug makers about successful Covid-19 vaccines. The Dow is up more than 12% and the S&P 500 is up more than 10% in November. The Nasdaq Composite rose more than 9% and lagged as investors dropped technology shares in cyclical games.
Stocks rise amid worsening Covid-19 infections in the U.S. The 7-day average of daily new Covid-19 infections in the U.S. topped 150,000 for the first time on Monday, according to a CNBC analysis of Johns Hopkins data. Retail sales fell below expectations in October as millions of Americans lost their unemployment benefits due to the surge in cases.
A number of retailers reported quarterly results on Wednesday. Target, Lowe’s and TJX Companies will report back before the opening bell. Chipmaker Nvidia, Copa Holdings and L Brands are reporting wins after Wednesday’s meeting.
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