Wall Road is breaking away from document ranges when open; Stimulus in focus
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York
By Medha Singh and Devik Jain
(Reuters) – Wall Street major indices are likely to slide from record highs on Tuesday after several disappointing quarterly earnings reports as investors closely tracked progress in passing a proposed $ 1.9 trillion stimulus package.
Take-Two (NASDAQ 🙂 Interactive Software Inc fell nearly 4% after the video game publisher saw a decline in quarterly adjusted sales and shied away from announcing major new releases.
Gucci lipstick maker Coty (NYSE 🙂 Inc fell 2.4% as weak makeup demand wiped millions from its quarterly sales.
The optimistic corporate earnings so far, as well as financial and tax support, have fueled the Dow and the company’s six-day run. However, analysts have warned of risks posed by the new coronavirus variants and disruptions in the introduction of vaccines.
“We have come a long way in a short time,” said Josh Wein, portfolio manager at Hennessy Funds. “It won’t take long for the market to pause … whether it’s fiscal stimulus considerations or the occasional talk about inflation or rate hikes.”
Last week’s data, which showed slower-than-expected labor market growth, underscored the need for further government aid to mitigate the effects of the COVID-19 pandemic.
The White House expects the House of Representatives to closely monitor President Joe Biden’s rescue plan as it marks his most recent legislative session, but expects lawmakers to tweak some elements.
Meanwhile, new cases of the virus have fallen to the lowest level since early November for four consecutive weeks, despite health officials concerned that new variants of the virus could slow or reverse that progress.
At 8:19 a.m. ET, the Dow E-Minis fell 78 points, or 0.25%, and the S&P 500 E-Minis fell 8 points, or 0.2%. E-minis fell 22 points, or 0.16%.
Large US banks were down between 0.5% and 1% in premarket trading, tracking a decline in US Treasury yields. Heavyweight tech companies Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ :), and Microsoft Corp. (NASDAQ 🙂 were also down slightly.
Toy maker Mattel Inc. (NASDAQ 🙂 and phone supplier Cisco Systems Inc (NASDAQ 🙂 slipped past their profits after the market closed.
Analysts expect S&P earnings to increase 2.4% in the fourth quarter. This is a clear reversal of the annual decline of 10.3% at the beginning of the year per refinitive.
Glu Mobile (NASDAQ 🙂 Inc rose 34% on a takeover bid of $ 2.4 billion Electronic Arts Inc. (NASDAQ 🙂 that would bolster EA’s mobile platform through games like Design Home, Covet Fashion, and MLB Tap Sports Baseball.
Almost nearing the $ 50,000 mark when Tesla’s (NASDAQ 🙂 investment in the cryptocurrency, led by Elon Musk, assumed it would become a popular asset class for both businesses and money managers after the glow of investors could.
The Cryptocurrency Miner Riot Blockchain (NASDAQ 🙂 and the Marathon Patent Group rose more than 10%, extending their strong gains for day two.
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