Dow futures drop more than 100 points as Wall Street grapples with surge in Covid-19 cases and profits

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U.S. equity futures fell on Tuesday night following a mixed session in which traders weighed a recent spike in coronavirus infections.Dow Jones Industrial Average futures were trading 118 points lower, or 0.4%. The S&P 500 slipped 0.5% and futures on the Nasdaq 100 fell 0.4%.

The Dow Jones fell more than 200 points during regular trading and the S&P 500 slipped 0.3%. The Nasdaq Composite, meanwhile, rose 0.6%. The divergent market action on Tuesday came as names that would benefit from people staying at home – such as Amazon and Zoom Video – rose significantly, while stocks reliant on the economy reopening. decreased.

Daily cases of the coronavirus in the United States have increased by a record average of 69,967 over the past week, according to data compiled by Johns Hopkins University. Meanwhile, coronavirus-related hospitalizations have increased 5% or more in 36 states, according to data from the Covid Tracking Project.

This increase has led some countries to reinstate some lockdown measures. In the United States, the state of Illinois has ordered Chicago to close indoor restaurants.

“Uncertainty over COVID-19 related mobility restrictions and US policy means we should expect volatility to remain high for the rest of the year,” said Mark Haefele, chief investment officer for the global wealth management at UBS, in a note. “However, we continue to see improvements in the medium term. ”

“With ten vaccine candidates in late-stage trials around the world, our central scenario is that restrictions can begin to be lifted by 2Q21, helping company profits return to pre-pandemic levels by the end of 2021. “, did he declare.

Gains

Wall Street also looked at the latest batch of corporate earnings from the previous quarter, including those of tech giant Microsoft.Microsoft reported better-than-expected earnings and revenue for the previous quarter as sales of its cloud business rose sharply. However, the stock fell 0.3% in after-hours trading.

“Redmond continues to see strength in this area as more companies move to the cloud,” Wedbush analyst Dan Ives said in a note. “This is in stark contrast to the profits debacle we saw at SAP, a mature software mainstay SAP earlier this week, which highlights the obvious winners and losers in this cloud shift with MSFT in the lead.

First Solar also released quarterly numbers that beat analysts’ expectations, pushing its shares up about 10% after the bell. Boeing, General Electric, UPS and Fiat Chrysler are among the companies expected to report Wednesday before the bell.

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