Stock index futures fell slightly on Tuesday, indicating a modest pullback one day after major benchmarks hit another round of all-time highs on optimism about the potential for another large round of aid spending. What are the major benchmarks doing? Dow Jones YM00 industrial average futures, -0.24%, fell 66 points, or 0.2%, to 31,202. S&P 500 ES00 futures, -0.19%, were down 6.85 points, or 0.2%, at 3,901.25. Nasdaq-100 NQ00 futures, -0.17%, fell 18 points, or 0.1%, to 13,665. Stocks posted moderate gains on Monday, pushing the Dow Jones Industrial Average DJIA, + 0.76% to its first record close since Jan. 20, while the S&P 500 SPX, + 0.74% and Nasdaq Composite COMP, + 0.95% each scored. one a third consecutive record. finish. The small-cap Russell 2000 RUT + 2.53% led earnings, up 2.5% to its own record close.
What drives the market? The rally in stocks should take a breather after climbing to a series of new highs in recent days helped by good earnings reports, progress in Congress on President Joe Biden‘s tax relief plan and the accelerated launch. of coronavirus vaccines, along with the decline in new numbers of cases. analysts said. On a chart: The stock market is echoing 2009-10, and that means a pullback could be near, analysts warn. Primary focus remains the prospects for another big round of aid spending with President Joe Biden and Congressional Democrats preparing to push for a package. the Senate through a process known as budget reconciliation that would require a simple majority. That likely means a package closer in size to Biden’s $ 1.9 trillion proposal than previously expected. The focus on additional spending and optimism about the vaccine launch is seen as positive for cyclical stocks tied more closely to the business cycle. “The brightest outlook for US economic activity probably explains why value stocks and the ‘old economy’ are leading the latter charge to the upside, while tech heavyweights are left behind. at home like Amazon, Facebook and Apple have lagged behind, “Marios Hadjikyriacos, an investment analyst at XM, said in a note. Energy stocks were among the market leaders on Monday as oil futures continued to rise, with Brent BRN00 crude, + 0.03%, the global benchmark, topping the $ 60 per barrel level for the first time in more than a year. However, optimistic expectations around the economic outlook are not universal. The optimism index compiled by the National Federation of Independent Business in the US fell 0.9 in January to 95.0, reaching the lowest level since the start of the pandemic last spring. US Job Vacancies Data for December Federal Reserve Bank of St. Louis President James Bullard is scheduled to deliver his remarks at noon Eastern time. What companies are in focus? Pharmaceutical Eli Lilly & Co. LLY, + 1.98% said CFO Josh Smiley will resign after engaging in inappropriate personal communications with some employees. Lilly said Anat Ashkenazi, a 20-year veteran of the company, would replace Smiley. The shares fell 0.3% before trading. Shares of video game publisher Take-Two Interactive Software Inc. TTWO, + 2.82%, fell 4.6% in pre-market trading after reporting a better-than-expected outlook and results Monday night, as sales experienced a Christmas boost during the COVID-19 pandemic. Shares of DuPont de Nemours Inc. DD, up -0.11%, rose after the materials and chemicals company reported fourth-quarter earnings and sales that beat Wall Street expectations. Goodyear Tire & Rubber Co. GT shares, + 1.35%, were higher in premarket stock after reporting earnings and income that beat expectations. Coty Inc. COTY, shares of + 3.93% were lower after the beauty products company reported adjusted fiscal second quarter earnings that declined less than expected, while sales fell slightly below forecasts. What are other markets doing? The yield on the 10-year Treasury note TMUBMUSD10Y, 1.156% fell 0.3 pont basis to 1.155%. Yields and bond prices move in opposite directions. The ICE US Dollar Index DXY, -0.36%, a measure of the currency against a basket of six major rivals, fell 0.4% to 90.61. Oil futures were little changed, with the US benchmark CL.1 down -0.14% up 3 cents at $ 58 a barrel. GC00 gold futures, + 0.47% were up 0.5% at $ 1,842.90 an ounce. The pan-European Stoxx 600 Europe SXXP Index, -0.29%, was down 0.3%, while London’s FTSE 100 UKX, -0.07%, was flat. In Asia, Shanghai’s composite SHCOMP, + 2.01%, rose 2%, while Hong Kong’s Hang Seng HSI Index, + 0.53%, rose 0.5%, and Japan’s Nikkei 225 NIK, + 0 , 40% rose 0.4%.