Stock futures remained stable in trading overnight on Tuesday as investors awaited the inauguration of President-elect Joe Biden.
The futures of the Dow Jones Industrial Average were flat. The S&P 500 futures rose 0.1% more and the Nasdaq 100 futures rose 0.3%.
Netflix rose more than 10% in expanded trading after the company reported strong subscriber growth and said it was considering stock repurchases. Netflix easily surpassed estimates of net paid subscriber additions worldwide, which reported $ 8.5 million compared to projected analysts ’6.47 million.
Biden will succeed President Donald Trump as the 46th president of the United States shortly after noon ET. His inauguration speech will focus on the need to rally the country after a violent riot on Capitol Hill and amid extreme partisanship in Congress.
Investors will also be looking for any additional information on Biden’s $ 1.9 trillion Covid-19 aid plan unveiled last week. On Tuesday, Janet Yellen, Biden’s nominee for Secretary of the Treasury, backed spending on higher aid and urged lawmakers to “act to a large extent.”
“Everything else could take a back seat to the events in Washington, as investors expect major changes in policy and the prospects for a new administration,” said JJ Kinahan, TD Ameritrade’s chief market strategist.
Wall Street started the week with modest gains. The Dow rose more than 100 points on Tuesday, while the S&P 500 gained 0.8%, achieving a two-day losing streak. The Nasdaq Composite rose 1.5% as major technology stocks rebounded after last week’s heavy losses.
Biden’s stimulus proposal requires direct payments of $ 1,400 to most Americans, as well as an additional unemployment benefit, as well as state and local government aid. He also announced a comprehensive plan to combat the pandemic in the U.S., which includes a nationwide vaccine campaign.
The United States has fallen far short of its goal of vaccinating 20 million people by the end of last year. Although the Trump administration’s Warp Speed operation has administered more than 31.1 million doses nationwide, only 12.3 million people have been inoculated.
“I think there’s a very bright light at the end of the tunnel. We just have to do that over the next few months,” said Kristina Hooper, global market strategist at Invesco. “I expect markets to continue to move forward in expectations of a solid recovery later in 2021, when vaccines are widely distributed.”
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