Stock-index futures fell slightly Tuesday, signaling a modest pullback after major benchmarks scored another round of all-time highs on optimism over the potential for another large round of aid spending.
What are major benchmarks doing?
-
Futures on the Dow Jones Industrial Average
YM00,
-0.16% fell 52 points or 0.2%, to 31,216. -
S&P 500 futures
ES00,
-0.10% were off 5.10 points, or 0.1% at 3,903. -
Nasdaq-100 futures
NQ00,
-0.06% declined 15.75 point, or 0.1%, to 13,667.25.
Stocks saw moderate gains Monday, pushing the Dow Jones Industrial Average
DJIA,
What’s driving the market?
Analysts said there were no obvious catalysts for the softer tone, with equities due for a breather after surging to a series of new highs after a modest late-January soft patch.
The main focus remains on prospects for another large round of aid spending with President Joe Biden and congressional Democrats preparing to push a package through the Senate via a process known as budget reconciliation that would require a simple majority. That likely means a package closer in size to Biden’s $1.9 trillion proposal than previously expected.
The focus on additional spending and optimism over vaccine rollouts is seen as a positive for cyclical stocks tied more closely to the economic cycle.
“The brighter outlook for U.S. economic activity likely explains why value and ‘old economy’ stocks are spearheading this latest charge higher, while the stay-at-home tech heavyweights like Amazon, Facebook and Apple have fallen behind,” said Marios Hadjikyriacos, investment analyst at XM, in a note.
Energy shares were among Monday’s market leaders as oil futures continued to push higher, with Brent crude
BRN00,
Upbeat expectations around the economic outlook aren’t universal, however.
The optimism index compiled by the National Federation of Independent Business fell 0.9 in January to 95.0, hitting the lowest level since the onset of the pandemic last spring
Data on December job openings is due at 10 a.m. Eastern.
St. Louis Federal Reserve Bank President James Bullard is scheduled to deliver remarks at noon Eastern.
Which companies are in focus?
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Shares of videogame publisher Take-Two Interactive Software Inc.
TTWO,
+2.82% were down more than 4% in premarket trade after reporting a better-than-expected outlook and results late Monday as sales saw a holiday boost during the COVID-19 pandemic. -
Shares of DuPont de Nemours Inc.
DD,
-0.11% rose after the materials and chemicals company reported fourth-quarter profit and sales that beat Wall Street expectations. -
Coty Inc.
COTY,
+3.93% shares were lower after the beauty products company reported fiscal second-quarter adjusted profit that declined less than expected, while sales fell a bit shy of forecasts.
