Following the pullback seen over the course of the previous session, stocks may move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 181 points.
Unrelenting optimism about a new fiscal stimulus bill is likely to contribute to initial strength on Wall Street even as lawmakers have struggled for months to reach a compromise on a new relief package.
House Speaker Nancy Pelosi’s Deputy Chief of Staff Drew Hammill noted that the Democratic leader spoke with Treasury Secretary Steven Mnuchin about a coronavirus relief bill in a phone conversation Monday night.
“Recognizing the need to advance a final agreement on both matters together and quickly this week, the Speaker and the Secretary discussed the urgency of the committees finishing their work as soon as possible,” Hammill said on Twitter.
Hammill said Pelosi reiterated Democrats’ concerns about liability provisions, which remain an obstacle to securing state and local funding.
The conversation between Pelosi and Mnuchin came as bipartisan group of lawmakers publicly released their latest proposal, which was largely in line with a report from Reuters on Monday.
The proposal calls for a previously unveiled $908 billion bipartisan relief plan to be split into two proposals that could be voted on separately in order to win approval.
One bill would be a $748 billion measure including money for small businesses, the jobless and COVID-19 vaccine distribution, while the other would include more controversial measures such as liability protections for business and aid for state and local governments.
Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of November. Industrial production is expected to rise by 0.3 percent in November after jumping by 1.1 percent in October.
Stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session, with the Dow and the S&P 500 sliding into negative territory.
The major averages eventually closed mixed for the third consecutive session. While the Nasdaq rose 62.17 points or 0.5 percent to 12,440.04, the Dow slid 184.82 points or 0.6 percent to 29,861.55 and the S&P 500 fell 15.97 points or 0.4 percent to 3,647.49.
In overseas trading, stock markets across the Asia-Pacific region moved modestly lower during trading on Tuesday. Japan’s Nikkei 225 Index dipped by 0.2 percent, while China’s Shanghai Composite Index edged down by 0.1 percent.
Meanwhile, the major European markets are turning in another mixed performance on the day. While the U.K.’s FTSE 100 Index has fallen by 0.4 percent, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is up by 0.9 percent.
In commodities trading, crude oil futures are climbing $0.43 to $47.42 a barrel after rising $0.42 to $46.99 a barrel on Monday. Meanwhile, after sliding $11.50 to $1,832.10 an ounce in the previous session, gold futures are jumping $25.80 to $1,857.90 an ounce.
On the currency front, the U.S. dollar is trading at 103.79 yen compared to the 104.05 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2140 compared to yesterday’s $1.2144.
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