BMO Capital Markets Chief Investments strategist Brian Belski discusses the impact of stimulus relief on the markets and how the S&P 500 is shaping up for unprecedented earnings growth in 2021.
U.S. equity futures were modestly lower Monday as investors await the details of a proposed $908 billion COVID-19 stimulus package.
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Dow Jones Industrial Average futures were trading down 105 points, or 0.35% while S&P 500 futures and Nasdaq futures were weaker by 0.34% and 0.06%, respectively.
More details of the bipartisan aid package that has been backed by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer are expected to be released Monday. Senate Majority Leader Mitch McConnell has said he supports a $500 billion deal.
Pelosi said on Saturday that she expects a deal to be reached by Christmas.
EUPHORIC STOCK MARKET RUNS RISK OF BUZZ-KILL WITHOUT COVID-19 HELP
Looking at stocks, Boeing Co. was upgraded to “buy” at UBS amid optimism the planemaker can ramp up 737 Max production in a “supply constrained world post-2021/2222.” The Zurich-based investment bank also raised its price target to $300 per share, up from $150.
Looking at deals, Cisco Systems agreed to buy London-based cloud communications software provider IMImobile plc in a $730 million deal, including debt.
Meanwhile, Eastman Kodak Co. shares surged 71% ahead of the opening bell after The Wall Street Journal reported a federal agency found no wrongdoing in regards to a federal loan that helped the company pivot its business into the manufacturing of drug ingredients.
In commodities, West Texas Intermediate crude oil slid 44 cents to $45.82 per barrel while gold lost $5.90 to $1834.10 per ounce.
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In Europe, markets were trading mixed with Britain’s FTSE 100 up 0.3% amid reports Brexit talks are on the verge of collapse. Elsewhere in the region, France’s CAC 40 and Germany’s DAX were weaker by 0.77% and 0.34%, respectively.
In Asia, China’s Shanghai Composite index fell 0.81% despite government data showing exports rose 21.1% year-over-year in November, the fastest growth since February 2018. Hong Kong’s Hang Seng index 1.23% and Japan’s Nikkei lost 0.76%.
