U.S. stock futures were rose slightly in overnight trading and pointed to gains at the open on Tuesday, the final trading day of a volatile month for stocks.
Dow futures rose 50 points, or 0.35%. The S&P 500 and Nasdaq-100 were also set to open higher, with gains of 0.37% and 0.50%, respectively.
Shares of Wells Fargo ticked nearly 2% lower in after hours trading after the bank said it would likely slash its dividend in the third quarter to comply with the Federal Reserve stress test. Bank of America, Citi, JPMorgan and Goldman Sachs said their dividends would stay the same.
Shares of chip stock Micron jumped 5% in after hours trading on Monday following its better-than-expected earnings report. Micron gave strong forward revenue guidance. Shares of Lululemon also gained nearly 4% in extended trading on news it will acquire at-home fitness company Mirror for $500 million.
On Monday, the Dow climbed 580 points, helped by a 14.4% gain in Boeing’s stock, as certification flights for the Boeing 737 Max began Monday. The S&P 500 also registered a gain, climbing 1.5%. Monday’s gains brought the 500-stock index into positive territory for the volatile month of June.
The Nasdaq Composite rose 1.2%, helped by gains in Netflix, Microsoft, Facebook and Apple.
“It wasn’t a day where the sole driving force was simply rising expectations of continued economic improvement because the best five sector performances [Monday] comprised two cyclical sectors — industrials and materials— a growth sector— communication services — and two defensive sectors — utilities and staples,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. Monday “was characterized by broad participation in a strong rally.”
Monday’s sharp gains came amid a backdrop of increasing coronavirus cases in the U.S. and states attempt to reopen from the shutdown. U.S. governors are walking back or delaying reopening plans as Covid-19 cases climb around the country. New Jersey Gov. Phil Murphy announced the state will delay a resumption of indoor dining that was planned for Thursday.
Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 p.m. on Tuesday. The joint hearing will address the Fed and Treasury’s response to the coronavirus pandemic.
In remarks he will deliver Tuesday Powell said uncertainty reigns over the outlook for the economy in the wake of the coronavirus pandemic.
“Output and employment remain far below their pre-pandemic levels. The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus,” Powell said. “A full recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities. “The path forward will also depend on the policy actions taken at all levels of government to provide relief and to support the recovery for as long as needed,” Powell added.
The Conference Board’s consumer confidence index will be released at 10:00 a.m. on Tuesday. Economists polled by Dow Jones are expecting a read of 91 in June, up from May’s reading of 86.6.
Shipping company FedEx will report fiscal fourth-quarter earnings after the bell on Tuesday.
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