Stock futures opened lower late Monday after a mixed day on Wall Street.
Both the S&P 500 and Nasdaq reached record closing highs by the end of the regular session, led by a rally in tech stocks. The Dow ended slightly lower as financials, energy and industrial stocks came under pressure.
“Today has been really been a continuation of what we saw last week, where the cyclical rotation that had really gone vertical since the Pfizer vaccine was first announced in November kind of took a pause, and you saw a little bit of reassertion from some of the Big Tech names,” Baird investment strategy analyst Ross Mayfield told Yahoo Finance on Monday.
“The cyclical rotation that was predicated on kind of an economic boom in 2021 … I think that still makes sense, I think we’re still on a path to that, but it was never going to be a truly straight line given the headline volatility that we see given the pandemic on the ground,” he added.
Stocks this week have also been closely tracking traders’ assessments of the path forward for more fiscal stimulus, as President Joe Biden pushes to pass a $1.9 trillion coronavirus relief proposal through a hesitant Congress. Biden said during a new conference on Monday that he was “open to negotiate” some points of the proposal, including his call for additional direct checks of $1,400 for most Americans.
In terms of timing, however, hopes for a speedy passage of another stimulus package dimmed, after Senate Majority Leader Chuck Schumer said he aimed to advance the next round of virus relief legislation by mid-March, Bloomberg reported Monday.
“I anticipate the stimulus bill to get passed, but I think it is going to likely take several weeks for that to happen. We have a divided Congress, a $1.9 trillion proposed bill after a $900 billion bill that just went through in December, so I don’t think the $1.9 trillion is likely to even be passed,” Colleen MacPherson, Penobscot Investment Management director of research, told Yahoo Finance. “But I do think that in the stimulus bill, it will be more targeted to individuals. We might not have that $1,400 in direct payments. There likely will be negotiations there. And I don’t think that the federal minimum wage will be [raised] to $15.”
Meanwhile, investors are also closely monitoring this week’s packed schedule of corporate earnings results and economic data. Notable companies including Raytheon Technologies (RTX), Johnson & Johnson (JNJ), General Electric (GE), DR Horton (DHI), 3M (MMM), Lockheed Martin (LMT), American Express (AXP), and Verizon (VZ), the parent company of Yahoo Finance, are each set to report results Tuesday morning.
6:01 p.m. ET Monday: Stock futures open slightly lower
Here were the main moves in markets, as of 6:01 p.m. ET Monday:
S&P 500 futures (ES=F): 3,843.5, down 5 points or 0.13%
Dow futures (YM=F): 30,842.00, down 26 points or 0.08%
Nasdaq futures (NQ=F): 13,451.5, down 24 points or 0.18%
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