Wall Street Seen Opening Slightly Higher

January 6, 2021

Higher futures point to a positive start for U.S. stocks Wednesday morning. While optimism about additional stimulus and the rollout of coronavirus vaccines are expected to support the market.

Worries about a surge in new Covid-19 cases are likely to be a drag.

Senate Leader Mitch McConnell’s move, thwarting President Donald Trump’s plan for higher stimulus payments, may hurt sentiment. Due to this, direct payments to eligible Americans will likely stay at $600. Trump had demanded payments of $2,000 to individuals, and had his proposal approved by the House as well.

The Dow futures are currently up 0.32%, while the S&P 500 futures and Nasdaq futures are moving up 0.37% and 0.4%, respectively.

On the economic front, a report on manufacturing activity in the Chicago area in December is due out at 9:45 AM ET. The Chicago PMI had come in with a reading of 58.2 in November.

Data on pending home sales for the month of November is due at 10:00 AM ET. Pending home sales may have slipped 2.5% in November, according to forecasts.

The Energy Information Administration’s data on crude oil inventories for the week ended December 25 is due out at 10:30 AM ET.

In coronavirus updates, the volume of various COVID metrics in the United States rebounded on Wednesday, reporting the highest number of daily deaths and total hospitalizations ever recorded in the country.

The authorities have also confirmed the first known case of the new Covid-19 variant in the United States. According to experts, the new variant is considered to be more transmissible than the previous strains of coronavirus.

On positive news on the vaccine front, British drug major AstraZeneca Plc.’s COVID-19 vaccine, co-developed by the University of Oxford, has been approved for emergency supply in the UK.

Wall Street saw some profit taking on Tuesday, and the major averages pulled back off Monday’s record closing highs. The Dow dipped 0.2 percent, the Nasdaq closed lower by 0.4 percent and the S&P 500 shed 0.2 percent.

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