US pre-open: Futures trade higher as stimulus talks remain in focus
By Iain Gilbert
Date: Friday 16 Oct 2020
(Sharecast News) - Wall Street futures were pointing to a positive open ahead of the bell on Friday as stimulus talks on Capitol Hill came back into focus.
As of 1230 BST, Dow Jones futures were up 0.21%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.24% and 0.35% firmer, respectively.
The Dow Jones closed 19.80 points lower on Thursday, extending major indices' losing streak to three consecutive sessions.
With corporate earnings taking up much of investors' attention this week, stimulus news will return to the forefront on Friday - a quiet day on the results front, comparatively.
US lawmakers were continuing to send mix signals when it came to what progress they had made toward a new Covid-19 stimulus deal.
Treasury Secretary Steven Mnuchin said on Thursday that the White House would not allow differences over funding targets for coronavirus testing to derail talks with key members of the Democratic Party.
Donald Trump stated he would up his offer for a stimulus package above the current level of $1.8trn. While the President did not say whether or not he would match the $2.2trn bill passed by House Democrats, Mnuchin reiterated that he would not put a large fiscal stimulus package to the Senate.
Markets.com's Neil Wilson said: "The Republicans' $1.8trn offer has not won support from House Democrats. A deal will come but not yet it seems. Markets will continue to be on the hook for the headlines."
A rise in the number of new Covid-19 cases across the Midwestern states was also weighing on sentiment.
In earnings news, Bank of New York Mellon beat analyst estimates on both earnings per share and revenues, stating its third-quarter results reflected the "resilience" of its business model despite "significant" impacts from lower rates and associated money market fee waivers.
On the macro front, retail sales data for September will be published at 1330 BST, industrial production figures for last month will be released at 1415 BST and both business inventories for August and the University of Michigan's October preliminary consumer sentiment index will follow at 1500 BST.
Federal Reserve Bank of New York president John Williams will deliver a speech at 1445 BST.
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