BMO Capital Markets chief strategist Brian Belski examines the future of investing.
U.S. stock futures were pointing to strong gains at Tuesday’s opening bell as buyers remained in control after a report said projected President-elect Joe Biden has chosen former Federal Reserve Chair Janet Yellen as his would-be Treasury secretary.
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Dow Jones Industrial Average futures were higher by 287 points, or 0.97%, while S&P 500 and Nasdaq futures were up 0.73% and 0.34%, respectively. The early gains come after the major averages soared in the final hour of trading on Monday after The Wall Street Journal reported Yellen would be Biden’s pick to head the Treasury Department.
Stocks tied to the reopening of the economy continued to gain momentum after AstraZeneca on Monday became the third company to announce positive news regarding its COVID-19 vaccine.
Oil majors Exxon Mobil Corp. and Chevron Corp. in pre-market trading resumed higher as West Texas Intermediate crude oil climbed 49 cents to $43.55 a barrel, its highest since March.
Other stocks tied to the reopening of the economy, including cruise operators and airlines, were also pointing to a higher open.
Tesla Inc. shares were set to open in record territory a day after CEO Elon Musk became the world’s second-wealthiest person. Other electric-vehicle makers, including Nio and Li Auto, were also on track for gains.
Looking at earnings, Tiffany & Co. said strong sales in China and a smaller-than-expected decline in the U.S. resulted in revenue falling 1% from a year ago to $1.01 billion, ahead of the $980.7 million that analysts surveyed by Refinitiv were anticipating. The company said its merger with luxury goods retailer LVMH will close in early 2021.
Best Buy Co. reported comparable sales rose 23% year-over-year, topping the 14.7% advance that was expected, amid strong demand for work-from-home computer products.
Economic data due out Tuesday includes the Case-Schiller national home price index at 9 a.m. ET and the consumer confidence index at 10 a.m. ET.
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In Europe, the STOXX Europe 600 was trading up 0.62% while Britain’s FTSE 100, France’s CAC 40 and Germany’s DAX 30 all climbing at least 1%.
Asian markets finished mixed with Japan’s Nikkei 225 surging 2.5%, Hong Kong’s Hang Seng index tacking on 0.39% and China’s Shanghai Composite index sliding 0.34%.
