Inventory futures are rising barely forward of US election day
US stock futures rose slightly in overnight trading as investors waited for Tuesday's presidential election between incumbent Donald Trump and former Vice President Joe Biden.
Dow futures rose 84 points. S&P 500 and Nasdaq 100 futures gained 0.2% and 0.22%, respectively.
Stocks rebounded on Monday from a sell-off through late October driven by a surge in Covid-19 cases, a collapse in economic talks and uncertainty about the election.
On Monday, the Dow Jones Industrial Average rose 423 points, or 1.6%. The S&P 500 was also up 1.23%. The Nasdaq Composite was the relative underperformer, gaining only 0.4% as Facebook, Amazon, Apple and Microsoft all closed lower.
"Today's strong stock market profit was fueled by technical support – a stock market that has rebounded significantly from its recent lows despite a recent spike in Covid cases, an indication of continued economic momentum," said Jim Paulsen, Chief Investment Strategist at Leuthold Group. said CNBC. "As the election finally approaches, investors who sold the rumor may be buying on the news now, and after falling nearly 10% last month, buying is back on the go."
CNBC's Jim Cramer said Monday the stock rally could stem from some optimism that unlike a controversial election, there will be a clear election result.
Stocks also received a boost after manufacturing activity reached its highest level in more than two years in October, indicating a resilient economy in the face of the coronavirus. The ISM Manufacturing PMI rose to 59.3, a value that shows the percentage of companies that said this activity increased during the month.
On the way to Tuesday, Joe Biden has a head start on the national polls on President Donald Trump. According to a poll by NBC News / Wall Street Journal on Sunday, the former vice president received 52% of support from registered voters compared to 42% for the president. In swing states, where elections are made, poll averages are lower than national polls.
A full day before election day, more than 94 million votes were cast in the US, which, according to the US election project, exceeded or approached the overall level in 2016.
Investors are also watching the key Senate elections that determine whether the so-called Blue Wave will take over Congress. Major policy changes, including other fiscal incentives, depend on which parts have majority control.
The Dow had its worst month since March in October, and the S&P 500 and Nasdaq both had their second straight losses.
In addition to the presidential election, the US is facing a surge in coronavirus cases. Coronavirus cases in the US continued to rise over the weekend, according to Johns Hopkins data. More than 81,400 new infections were registered on Sunday. According to a CNBC analysis of the Johns Hopkins data, the seven-day mean of new cases is above 81,000 for the first time.
After Bell Monday, Royal Caribbean Cruises canceled all sailing trips until the end of the year. The stocks fell slightly after hours.
In Europe, the UK was the youngest country to introduce new measures to reduce Covid-19, joining France, Germany, Greece, Belgium and Austria.
The winning season continues on Tuesday, with Bayer, Fox Corp and Humana reporting to the bell.
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