Traders at the New York Stock Exchange floor.
Source: New York Stock Exchange
Futures of U.S. stock markets rose Monday evening as Wall Street sought to recover in a tough week ahead of the inauguration of President-elect Joe Biden.
Futures contracts tied to the Dow Jones industrial average rose 140 points, or 0.5%. Those of the S&P 500 and the Nasdaq 100 added 0.6%.
The move of the futures comes after the stock fell last week. The Nasdaq Composite and the S&P 500 lost 1.5%, while the Dow fell 0.9%, respectively. It was the worst week of the three major indices since October.
The disappointing week of action came when Biden unveiled its $ 1.9 trillion economic relief plan as the country tries to gain control of the Covid-19 pandemic. Biden will be inaugurated Wednesday, with the National Guard in Washington amid security concerns following a Jan. 6 riot at the U.S. Capitol.
“Next week, global economic data and U.S. earnings reports will be plentiful, but what matters is whether President Biden’s inauguration on 1/20 takes place peacefully and whether Republicans in the Senate send signs of constructive cooperation or a 2020 repeat, ”Julian Emanuel, chief strategist of equity and BTIG derivatives, said in a note to clients on Sunday.
Janet Yellen, Biden’s nominee for Treasury secretary and former chairman of the Federal Reserve, will appear before the Senate Finance Committee on Tuesday. Yellen’s prepared statements call for the federal government to “act to a large extent.”
Tuesday also marks a strong earnings week. Bank of America and Goldman Sachs will report fourth-quarter results before the bell, with Netflix numbers after the market closes.
The earnings season started off badly last week. Shares of JPMorgan Chase, Wells Fargo and Citigroup lost ground on Friday following their earnings reports. JPMorgan exceeded Wall Street estimates on the top and bottom lines, but Wells Fargo and Citi lost revenue expectations.
The U.S. stock market closed Monday in honor of Martin Luther King Jr. Day.