Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange
US stock futures rose early Tuesday as Wall Street appeared to be bouncing back after a difficult week leading up to President-elect Joe Biden’s inauguration.
Futures contracts linked to the Dow Jones Industrial Average rose 166 points. Those for the S&P 500 and Nasdaq 100 also traded in positive territory.
The movement in futures comes after stocks fell last week. The Nasdaq Composite and S&P 500 lost 1.5%, while the Dow lost 0.9%. It was the worst week for the three main indices since October.
The disappointing week for stocks came when Biden unveiled its $ 1.9 trillion plan for economic relief as the country tries to deal with the Covid-19 pandemic. Biden is slated to be inaugurated with the National Guard in Washington on Wednesday after security concerns rose following a January 6 riot in the U.S. Capitol.
“We’ll have plenty of global economic data and US earnings reports in the coming week. What matters is whether President Elect Biden’s inauguration on January 20 will be peaceful and whether the Senate Republicans are sending signals of constructive cooperation or a repeat of 2020. ” Julian Emanuel, chief strategist for stocks and derivatives at BTIG, said in a statement to clients on Sunday.
Janet Yellen, Biden’s nominee for Treasury Secretary and former Federal Reserve chairman, will appear before the Senate Finance Committee Tuesday. Yellen’s prepared remarks urge the federal government to “act big”.
Tuesday also starts a tough week of winning. Bank of America and Goldman Sachs will announce their fourth quarter results before the bell. Netflix numbers will be released after the market closes.
The earnings season got off to a bad start last week. JPMorgan Chase, Wells Fargo and Citigroup stocks lost ground on Friday following their earnings reports. JPMorgan beat Wall Street’s profit and loss estimates, but Wells Fargo and Citi fell short of revenue expectations.
The US stock market closed on Monday in honor of Martin Luther King Jr. Day.