Stock futures rose marginally after the market stalled on Tuesday, with major indices ending the regular session a little lower.
The futures on the Dow Jones Industrial Average rose 89 points. S&P 500 futures gained 0.3%. Nasdaq 100 futures were up 0.3%. The S&P 500 is only just under 1.1% below the record value, with the main benchmark barely changing for May.
Stocks of companies associated with recovering economies gained in premarket trading. Ford rose 2%. Carnival Corp was up about 1%. Bank of America stocks were also higher in early trading.
Royal Caribbean rose nearly 4% in premarket trading after the cruise company received approval to begin test cruises with volunteer passengers.
The optimism for the economy comes from the US average daily Covid cases falling below 25,000 and nearly half of the US population having received at least one dose of vaccine.
Bitcoin continued its comeback, adding to risk sentiment in the financial markets. Bitcoin rose back above $ 40,000 on Wednesday, according to Coin Metrics. On May 19, the cryptocurrency hit a low of 30,001.51 after a 30% intraday crash. Shares in Tesla, a major Bitcoin holder, gained 0.5% in premarket trading. Coinbase stocks were also higher.
Investors will keep an eye on Washington and any developments for an infrastructure compromise that could further boost the economy. Senate Republicans plan to send President Joe Biden a counteroffer this week that costs nearly $ 1 trillion.
Nordstrom shares fell about 6% in extended trading after the company missed Street earnings expectations for the first quarter, while Urban Outfitters shares rose more than 7% after better-than-expected quarterly results after the bell.
The market struggled to find direction on Tuesday. Shares rose higher at the beginning of the session but ended up closing lower. The S&P 500 fell 0.2% as the energy sector lagged. The Nasdaq Composite closed flat while the Dow Jones Industrial Average fell 81.52 points, or 0.2%.
Airlines, cruise lines and home builders stocks did better on Tuesday. United Airlines surged 1.5% after the airline said domestic leisure fairs this month reopened above 2019 levels. Royal Caribbean and Norwegian Cruise Line stocks rose 3.6% each. NVR shares rose around 4%.
The strong performance in the reopening of stocks suggests that “investors are also leaning into normalcy,” wrote Chris Hussey, managing director of Goldman Sachs, in a note. “The news of the US recovery remains very encouraging. And it’s interesting to see that some stocks may not have fully priced it in yet.”
“Low volatility, flat stocks, falling US Treasury bond yields, and low trading volumes – feels like a Tuesday in the week leading up to the holidays. In other words, it feels … normal,” Hussey said.
Investors await a speech from Federal Reserve Vice-President Randal Quarles on Wednesday as concerns about inflation and the possible reduction in asset purchases persist.
Senior executives at the country’s largest banks – including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley – will testify before the Senate Banking Committee on Wednesday morning.
Dick’s Sporting Goods, American Eagle Outfitters, NVIDIA, Snowflake and other companies are expected to show profits on Wednesday.
– CNBC’s Michael Bloom contributed to the coverage.