Stock Futures Edge Up, Pointing to Flat Week for Dow
24 December 2020 - 9:40PM
Dow Jones News
By Caitlin Ostroff
U.S. stock futures edged higher Thursday, suggesting that the
Dow Jones Industrial Average may end the holiday-shortened week on
a flat note.
Futures tied to the Dow ticked up 0.2%. The blue-chips index
slipped almost 0.2% this week through the Wednesday close. Futures
linked to the S&P 500 gained 0.2%, while those on the
technology-focused Nasdaq-100 index edged up 0.1%.
Markets will close early Christmas Eve, with the New York Stock
Exchange and Nasdaq scheduled to end trading at 1 p.m. ET. U.S. and
European markets will be closed Friday for Christmas
celebrations.
Investors have been focused on a swath of issues this week,
including the prospects for additional fiscal support for the
economy and signs of the rebound faltering. Elevated coronavirus
infection levels and a new variant of Covid-19 that emerged in the
U.K. have prompted concerns that there may be additional lockdown
measures in the winter months, weighing on market sentiment.
"The market is so on edge at the moment. People are worried
about more lockdowns, more travel restrictions," said Altaf Kassam,
head of investment strategy for State Street Global Advisors in
Europe. "This will continue to bounce the market around."
Bets that a fresh fiscal-stimulus package would offer support to
families and small businesses in coming days have come into
question after President Trump vetoed a $740.5 billion
defense-policy bill on Wednesday and demanded last-minute changes
to coronavirus-relief legislation. His unexpected criticism of the
bill has prompted another standoff between the White House and
Capitol Hill. Mr. Trump hasn't yet said if he will veto the aid
package.
Weak recent economic data has bolstered hopes among investors
that an agreement will be reached on the aid package. Data released
Wednesday showed that household spending dropped for the first time
in seven months and layoffs remained elevated as a surge in virus
cases weighed on economic recovery.
"The market is definitely expecting an aid package to go
through," said Mr. Kassam.
In bond marks, the yield on the 10-year Treasury note ticked
down to 0.948%, from 0.953% Wednesday. Yields fall when bond prices
rise.
Overseas, the pan-continental Stoxx Europe 600 edged up 0.2%,
with markets in Germany and Italy shut until Monday.
The British pound rose 0.7% against the dollar, and 0.6% against
the euro, as the U.K. and the European Union drew closer to a
post-Brexit trade deal. Investors have said they would welcome
greater clarity over trade relations. The U.K.'s stocks benchmark,
the FTSE 100 index, ticked up 0.1%.
Sterling has rallied in recent days as investors expected that a
deal would be reached. "The market already had this as the base
case," said Andreas Steno Larsen, global foreign-exchange and
fixed-income strategist at Nordea Markets. "I don't think anyone
really believed in the cliff-edge scenario."
Most major stock indexes in Asia closed higher. South Korea's
Kospi gained 1.7%, while Japan's Nikkei 225 advanced 0.5%. China's
Shanghai Composite dropped 0.6%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
December 24, 2020 05:25 ET (10:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024