Stock futures point to more gains
U.S. stocks look poised for a higher open on Tuesday, after the Dow jumped about 1,604 points, or +7.6% in the previous session on hopes that the novel coronavirus (COVID-19) crisis is peaking.
As of 6:00 a.m. Eastern, the blue-chip Dow futures indicated a gain of 681 points, or 3.03% to 23,169. S&P 500 futures climbed 71.38 points, or 2.7% to 2,715.88 while the tech-heavy Nasdaq 100 futures advanced 183.87 points, or 2.29% to 8,213.62.
Congress, White House eyeing another stimulus package
Just a few days after President Donald Trump signed a $2 trillion relief package intended to address the economic impacts as a result of the coronavirus pandemic, new reports say his administration and Congressional leaders are converging on the need for a new package.
House Speaker Nancy Pelosi is pushing for another round of direct payments to the American people and more cash for companies to make it easier for them to keep workers on the payroll. Senate Majority Leader Mitch McConnell has also signaled in recent days his intent to get to work on a new bill.
On Monday, Trump told reporters at the White House that the administration is “going to take good care” Americans during the coronavirus crisis.
Crude surges on hopes of a Russia-Saudi Arabia output deal
Crude futures also rose early Tuesday after Russia’s sovereign wealth fund CEO Kirill Dmitriev said in an interview on CNBC overnight that Moscow and Riyadh are “very, very close” to a deal to cut oil production.
The deal between the two oil producing countries is expected to end a price war that has driven energy prices to record lows and weighed on financial markets.
“I think the whole market understands that this deal is important, and it will bring lots of stability, so much important stability to the market, and we are very close,” Dmitriev said.
As of this writing, U.S. West Texas Intermediate crude futures were at $27.04 a barrel, up 96 cents, or 3.68%. International Brent crude futures were up 86 cents, or 2.6% to $33.91 a barrel.