· S&P 500 and Nasdaq end lower after sharp drop in tech titans
The S&P 500 and Nasdaq ended lower on Monday, pulled down by Amazon, Microsoft and other recent big-name leaders of Wall Street’s recent rally.
Ø The Dow Jones Industrial Average .DJI rose 0.04% to end at 26,085.8 points.
Ø The S&P 500 .SPX lost 0.94% to 3,155.22.
Ø The Nasdaq Composite .IXIC dropped 2.13%, to 10,390.84.
Ø The S&P 500 technology index .SPLRCT fell 2.12%, leading declines.
The S&P 500 dipped after briefly touching its highest level since Feb. 25. The index has rebounded over 40% since mid-March, even as COVID-19 infections rose rapidly in Arizona, California and Texas and about 35 other states.
economic data has strengthened belief that the stimulus-pumped U.S. economy is on the road to recovery, helping investors look past a recent spike in U.S. infections.
The Cboe Volatility Index , Wall Street’s fear gauge, closed at its highest level since June 26. Its 4.9-point gain for the session was its largest since June 11.
· Stock futures rise ahead of bank earnings
U.S. stock futures moved higher in overnight trading and pointed to gains at the open on Tuesday, as investors eye earnings reports from some of the nation’s largest banks.
Dow futures rose 80 points. The S&P 500 and Nasdaq 100 futures rose 0.3% and 0.4%, respectively.
· European markets close higher on coronavirus vaccine hopes; Neles spikes 38%
European stocks closed higher Monday as optimism over a potential coronavirus vaccine outweighed concerns over surging coronavirus cases around the world.
The pan-European Stoxx 600 provisionally closed up by 1%, with basic resources adding 2% to lead gains as all sectors and major bourses entered positive territory.
Meanwhile, earnings season is set to kick off this week, with big banks and others reporting their quarterly results. JPMorgan, Citigroup and Wells Fargo are scheduled to report on Tuesday. Pepsi reported better-than-expected earnings Monday, though net sales dropped around 3% due to the impact of Covid-19.
· Asia Pacific stocks set to trade lower; investors await China’s June trade data
Stocks in Asia Pacific were set to decline at the Tuesday open, ahead of the release of China’s trade data for June.
Futures pointed to a lower open for Japanese stocks. The Nikkei futures contract in Chicago was at 22,615 while its counterpart in Osaka was at 22,540. That compared against the Nikkei 225′s last close at 22,784.74.
Shares in Australia were also set to trade lower, with the SPI futures contract at 5,892, as compared to the S&P/ASX 200′s last close at 5,977.50.
Investors will await the release of Chinese trade data for June, expected to be released some time on Tuesday. The data could provide more clues on China’s economic recovery following the imposition of lockdowns earlier in the year to curb the spread of the coronavirus.
Later on Tuesday stateside, some of the largest banks in the U.S. such as Citigroup and JPMorgan Chase are set to report their earnings.
Reference: CNBC, Reuters
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