Futures on the Dow Jones Industrial Average rose 80 points. Futures for the S&P 500 added 0.3%.
The gains came as the more actively negotiated oil contract in June rebounded 2%. The May contract, which triggered the sale of Monday’s stocks with a bizarre negative below-zero drop, remained in negative territory.
IBM plunged 2.3% in extended trade after the company reported a 3.4% drop in revenue in the first quarter from a year ago against the backdrop of the spread of the coronavirus. Coca-Cola, Netflix and Chipotle are about to release earnings on Tuesday.
Stocks fell on Monday to start another likely volatile week, with the Dow Jones falling nearly 600 points as an unprecedented drop in oil prices weighed on investor sentiment. Crude West Texas Intermediate for May delivery fell more than 100% to $ 37.63 a barrel, highlighting how demand has plummeted due to the coronavirus pandemic.
Also on Monday, the Senate failed to reach agreement on the next package to save an economy and a healthcare system ravaged by the global pandemic. However, a vote was put in place as early as Tuesday afternoon to reconstitute a key aid program for small businesses.
Investors continued to monitor the coronavirus pandemic and the country’s plan to reopen the economy. Signs have shown that New York is past the worst of its epidemic. Georgia launched aggressive plans on Monday to reopen the state’s economy, calling on many companies to reopen on Friday.
“Market volatility remains intense, as subtle changes in the tone of the news lead to dramatic changes in investor sentiment,” said Mark Hackett, chief investment researcher at Nationwide. “The markets rebounded strongly last week on the hope that the worst of the outbreak would be behind us. This optimism is likely to face headwinds as the reopening of the economy heads for intense debate. “
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