Futures contracts on the Dow Jones Industrial Average gained 50 points. The S&P 500 and Nasdaq 100 futures contracts both rose 0.1%.
The spread of the delta coronavirus variant continued to keep investors on the lookout. The seven-day average of daily coronavirus cases in the United States reached 72,790 on Friday, surpassing the peak seen last summer when the country did not have a licensed Covid-19 vaccine, according to data compiled by the Centers for Disease Control and Prevention.
“The delta variant of the virus is now spreading rapidly in the United States and a modest decline in activity cannot be ruled out,” said Solita Marcelli, CIO Americas at UBS, in a note. “But any potential slowdown should be mitigated somewhat. “
Source : NYSE
A late-day sell-off of economically sensitive stocks like Materials and Industrials ultimately pushed the Dow Jones and S&P 500 into the red. The Dow blue chip climbed 250 points to an all-time high at one point, but finished almost 100 points lower on Monday.
Investors are closely monitoring progress in Washington as lawmakers move towards a bipartisan infrastructure bill that would spend $ 550 billion on U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber ahead of a month-long suspension scheduled from August 9.
Meanwhile, the second quarter earnings season continues with Under Armor, Lyft, Eli Lilly and Amgen among the companies to report on Tuesday.
So far, 88% of S&P 500 companies have reported a positive earnings surprise for the second quarter, which will mark the highest percentage since FactSet began tracking this metric in 2008.
“Rising earnings support valuation,” said Terry Sandven, chief equity strategist at US Bank Wealth Management, in a note. “Rising incomes and profits, generally contained inflation, relatively low interest rates, ongoing monetary and fiscal stimulus policies, and medical advances from COVID-19 support our outlook for US stocks to rise in the second half of the year. from 2021. “