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Stocks - U.S. Futures Higher as Market Eyes More Fed Stimulus

Published 06/16/2020, 07:03 AM
Updated 06/16/2020, 07:07 AM
© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are set to open higher Tuesday, continuing Monday’s late bounce amid hopes U.S. authorities will continue to offer stimulus to support the economy.

At 07:05 AM ET (1105 GMT), S&P 500 Futures traded 39 points, or 1.3%, higher, Nasdaq 100 Futures up 115 points, or 1.2%. The Dow Futures contract rose 478 points, or 1.9%. 

The U.S. central bank said late Monday it will soon start purchasing individual corporate debt, in another effort to support the credit market as part of its emergency facilities introduced in the wake of the coronavirus pandemic.

This helped Wall Street close higher, reversing hefty earlier losses. The Dow Jones Industrial Average ended up 0.6%, or 157 points, after falling more than 300 points at the open. The S&P 500 gained 0.8%, while the Nasdaq Composite added 1.4%.

Adding additional support Tuesday is a report that the Trump administration is preparing a nearly $1 trillion infrastructure proposal in order to support the world’s largest economy.

This news has outweighed worries of a second wave of the Covid-19 virus, with several states including Texas and California reporting a resurgence of new cases.

Focus will soon turn to Fed chair Jerome Powell as he testifies in front of the Senate on his economic outlook and recent monetary policy decisions, at 10 AM ET (1400 GMT).

Last week, the Fed left interest rates unchanged near zero and said the central bank would do anything needed to support the economy as it struggles to recover from Covid-19 business shutdowns. 

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Ahead of Powell’s appearance there will be the release of the April retail sales numbers, at 8:30 AM ET. These are expected to show a strong rebound, up 8%, after a decline of 16.4% in the prior month.

The retail sales data will be followed by industrial production and manufacturing output figures at 9:15 AM.

In corporate news, Oracle (NYSE:ORCL) is out with earnings after the market close. The tech giant is one of the first to report a full quarter that was nearly all consumed by Covid-19 business shutdowns.

Also in the spotlight is Apple (NASDAQ:AAPL). EU antitrust authorities have launched two probes into whether it violated competition laws through its Apple Pay service and its App Store for software that runs on its mobile devices.

Oil prices edged higher Tuesday, helped by the International Energy Agency's upward revision to its forecasts for global oil demand this year and next. The IEA still expects demand to contract on average by over 8 million barrels a day this year, however.

U.S. crude prices rose 1.6% to $37.70 a barrel, while Brent Futures climbed 1.7% to $40.40.

Elsewhere, gold futures rose 0.6% to $1,736.35/oz, while EUR/USD traded at 1.1319, down 0.1%.

 

Latest comments

Market is going up in dollar terms since dollars are becoming worth less (i.e., inflation).  Buy gold and bitcoin (BTC).  Don't believe the government's inflation figures.
This is the real reason of stock rocket. Not other reason.
Once they will do something, once not .... Hahahah
Zombie communist economy on taxpayer debt. I better get free flights for life after all the airline stock tomfoolery.
depending on the level of market function …… who can tell the market not function well? So, FED should not buy bond to support it anymore.
Even if meteorite hit USA, SP500 will stay above 3000. 21st century is century of fake dept economy.
You know to put the word market in the title is misleading. It's not a market when the government controls it. please fix that in future articles. Thank you
great news
Okay, this is the first time I found a headline on here to be flat out wrong...the markets are up on a breakthrough Covid treatment today!
Oh are we re-using that old chestnut again, that one never gets old.  Can't wait till we can us China deal phase 3.  That should be worth another DOW 1000pts.  Nothing will really happen but it will go up anyway.
Ask fed to declare end of stimulus and u will see -10% today.
More fed stimulus isnt needed
NASDAQ at ATH. Pumping is just burning money and clouding reality.
He is trash. Enough said
OMG!! Is the FED helping the real economy or the stocks market?? Everytime there's a market correction, there's FED freshly printed $ again?? There's no need to pay the national debt anyway!! Meanwhile, what can the rest of the world do?? watch a big global bubble manufactured by American maybe..
Trump
Coronavirus is still damaging businesses and the economy. We are seeing a resurgence and if its not mitigated there will be shutdowns again nationwide. Im skeptical about the market going up and its just temporary. There is probably another major crash looming ahead.
The death rate will have to surge before there will be anymore shutdowns.
Nah, young people are tired of staying at home. There won't be another shutdown.
Shutdowns are cancelled. Thanks to social justice and police brutality.
thanks God for the Fed. it is supporting the economy and doing what is necessary during this crisis.
Fed is creating a prelude for much bigger crisis which will inevitably come, debt crisis. Not speaking about loosing their credibility with their so much obvious effort to help the banks for the sake of main street savings and the dollar.
NO! This will result in massive damage later this year and everyone will lose.
seriously??
North Korea blowing up offices is nothing I guess
We got shortly under 3000 which is obviously a territory where Trump, Powell and Wall Street banks have the need to manipulate the market in order to push it up. Interesting how the banksters and Trump are so much afraid of further fall. They will pump in whatever it takes. They are step by step dismantling any fiscal responsibility left and making dollar weaker and weaker currency. Just for the sake of keeping corrupted Wall Street Banks and hedge funds in profit. Seeing this injustices I am not surprised people protest in the USA so much. It is not about ******a black person and it about social inequalities created by exactly the same people who try to manipulate the markets to their own benefit. Stimulus is just a nice word for a smooth transition of more wealth to friends of the friends.
It's all support.
 You mean like giving cheap credit to companies which are already heavily indebted and as such keep them alive zombies? Unfortunetaly it is not only USA which is acting in this irresponsible way. We all will pay price for this later, not now because someone needs to be re-elected...
Again, it's all support. Those zombie companies probably employ thousands of people.
Fed stimulus is a sign of economic distress, not economic health! Why this is good news for the economy and stocks I'll never understand!!
World has been turned upside down.
Yup.. u said it well.
It is a new market, with a lot of volume coming from new investors that just want to get in. They dont review the stats and financials that experienced investors use. It is all odd but dont expect the market to tank again like in March, politics wont allow that during an election year.
Is he finally going to let us know his stock picks for the week?
Feeling good about today! Back in the saddle again, and made some major purchases. We will see what happens and I wish everyone a prosperous day!
not a peep will be made from either side about the bubble continuing. deflation / rising stocks now. hyperinflation after and an imploding bubble. thanks Powell and friends.
Well the politicians must have gained great wealth through the stock market in recent months
...and Wall St. Giving free money to Central Bankers is essentially stealing your purchasing power.
Like the ones that sold before the coronavirus news broke out. That was effectively insider trading.
 Don't worry, they bought right back in when it bottomed!
"Bla bla bla bla bla more stimulus"
Short term yay stonks go up, long term?
Long term they go up as well. That is why Buffet buys and holds.
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