Stock futures rise as coronavirus cases continue to climb

Stock futures rise as coronavirus cases continue to climb

The “Fearless Girl” statue stands outside the New York Stock Exchange (NYSE) in New York, U.S., on Friday, June 12, 2020.Jeenah Moon | Bloomberg | Getty ImagesU.S. stock futures were little changed early Monday, pressured by persistent worries about the coronavirus outbreak.Dow Jones Industrial Average futures implied an opening gain of about 50 points. S&P 500 and Nasdaq-100 futures were also nearly flat prior to the opening bell.The major U.S. stock averages are coming off their fourth weekly gains in five weeks. Both the Dow and S&P 500 advanced at least 1% last week, while the Nasdaq Composite surged more than 3%.News of the Federal Reserve buying corporate bonds, along with a record spike in U.S. retail sales, lifted sentiment on Wall Street last week. Expectations of an economic recovery also buoyed stock prices. However, the number of newly confirmed coronavirus cases across the U.S. and elsewhere in the world continues to increase, raising questions about the global economic recovery.”The areas of concern that weighed on stocks Friday afternoon were reinforced over the weekend,” Adam Crisafulli of Vital Knowledge wrote in a note. “Governments look set to proceed with reopening, but the real driver of growth will be behavioral normalization and that is very likely to be impended by the steady negative coronavirus news flow.”The U.S. reported more than 30,000 additional coronavirus cases on Friday, the highest number of confirmed one-day infections since May 1, data compiled by Johns Hopkins University showed. Nevada, Florida, California and Arizona have also reported record-high single-day infections.The recent coronavirus uptick in some states led Apple to reclose some of its stores. Meanwhile, a trade group said cruise lines voluntarily suspended all trips until Sept. 15.”There’s a war going on between the bulls and bears, with each seizing every little data point to buttress their opposing arguments,” said Vito Racanelli, market intelligence analyst at Fundstrat Global Advisors, in a note.”I do think that perhaps the market has gone past its recovery ‘straight-up’ phase, as investors realized coronavirus (COVID-19) was not a world ender,” Racanelli said. “But the data remains mixed and Covid-19 fear remains strong, and it’s understandable.”The S&P 500 has ripped more than 41% higher since hitting an intraday low on March 23. For the quarter, the broader market index is up by nearly 20%.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.—CNBC’s Michael Bloom contributed to this report.


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