US stock index futures went into decline on Tuesday as traders grappled with the newly released coronavirus stimulus plan, alongside a mixed batch of corporate earnings reports.
The US Senate’s latest $1 trillion relief package was announced on Monday night, four days before expanded unemployment benefits are set to expire for millions of Americans.
Though hopes of further stimulus helped to push markets higher on Monday, the sentiment did not last through Tuesday morning. Dow Jones Industrial Average futures fell by 0.4%, while S&P 500 and Nasdaq 100 futures each fell by 0.5%.
Sentiments were cooled in part by the release of McDonald’s quarterly profit report, which did not offer a forecast for future performance due to lockdown uncertainties and showed a 30% drop in revenue despite beginning a recovery in the US. The results fell short of analysts’ expectations, and the company’s shares fell by 2% in premarket trading.
3M, trades on the Dow Jones Industrial Average alongside McDonald’s, also fell below expected revenue and saw a 3.2% drop in the value of its shares.
Conversely, Pfizer managed to exceed analysts’ expectations in its quarterly earnings report amid rising demand for Ibrance, its cancer drug, and Eliquis, its blood thinner. The company saw a 3% share rise on Tuesday.
Pfizer also spurred optimism with a late Monday announcement that it will collaborate with German partner BioNTech on a global study to test their leading COVID-19 vaccine candidate.
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