US pre-open: Futures point to modest gains ahead of data onslaught
By Iain Gilbert
Date: Wednesday 05 Aug 2020
(Sharecast News) - Wall Street futures were pointing to some early gains ahead of the bell on Wednesday as market participants looked to Washington for news on another Covid-19 stimulus package and awaited a slew of data points scheduled for later in the day.
As of 1220 BST, Dow Jone futures were up 0.68%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.52% and 0.25% firmer, respectively.
The Dow Jones closed 164.07 points higher on Tuesday amid reports of possible further fiscal stimulus in the pipeline and some positive news on the pandemic front.
Investors were still closely monitoring the stimulus discussions on Capitol Hill before the open on Wednesday, with both the White House and Democratic Congress members indicating some progress had been made in negotiations. However, the two parties were said to still be separated on several key issues.
Corporate news was also in focus, with a stronger-than-expected set of earnings from Disney leading to some optimism among traders, with profits of $0.08 per share, while analysts expected a loss of $0.64, as it hit 100m paid subscribers across its streaming services.
CVS raised its full-year guidance after topping earnings per share estimates, while Moderna shares were 1.7% higher in pre-market trading after revealing it had received roughly $400m of customer deposits for the supply of its Covid-19 vaccine candidate.
Humana shares also looked set to rally after it said both profits and revenues had risen above expectations in the second quarter of its trading year, while Etsy, Boku and Square will all post earnings after the close.
IG analyst Chris Beauchamp said: "Stocks are back in rally mode this morning, picking up where they left off on Tuesday and maintaining the bullish outlook for August so far.
"The S&P 500 seems determined to push back to its record highs, while the Nasdaq continues to move into uncharted territory."
Gold prices also crossed the psychologically important $2,000 per ounce mark.
On the macro front, despite another new low set last week, mortgage application volume decreased 5.1% week-on-week, according to the Mortgage Bankers Association. However, demand was still considerably higher for refinances and purchase applications than it was at the same time a year earlier.
Still to come, ADP employment data will be released at 1315 BST, while trade balance figures for June will be published at 1330 BST, IHS Markit's July PMI will be out at 1445 BST and the ISM's non-manufacturing business activity index will follow at 1500 BST.
Federal Reserve Bank of Cleveland president Loretta Mester will deliver a speech at 2200 BST.
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