Inventory futures are falling barely as a consequence of incentives and election uncertainties that Tesla shares acquire
Futures contracts linked to major US stock indices eased early Thursday amid further uncertainties over fiscal stimulus talks and the election.
The markets were supported by better-than-expected results from Tesla.
Dow Jones Industrial Average futures lost 57 points, or 0.2%. S&P 500 futures lost 0.2%. Nasdaq 100 futures fell 0.1%.
Traders continued to watch the business cycle as markets wavered in the headlines over the negotiations this month. Nancy Pelosi deputy chief of staff Drew Hammill continued to offer investors additional scope for optimism late Wednesday.
“Speaker and Secretary Mnuchin spoke for 48 minutes today at 2:30 pm. Today’s conversation brings us closer to getting pen to paper to write laws,” Hammill wrote on Twitter shortly after the closing bell on Wall Street.
“The spokesman and secretary plan to speak again, hopefully tomorrow, under further guidance from the committee chairs who are working to resolve outstanding issues,” he added.
The deputy chief of staff said the White House and Democrats continue to narrow their disparities on health priorities, but that more needs to be done to keep schools safe.
Dealers appeared to be stifling Hammill’s comments, however, as there had been weeks of similar comments but little concrete evidence that Pelosi and Treasury Secretary Steven Mnuchin could send a bill to President Donald Trump’s desk before the November 3rd election.
Earlier on Wednesday, Pelosi said in an MSNBC interview she hoped both sides could resolve the “middle piece” of the coronavirus relief bill later in the day.
Their comments followed remarks made by White House Chief of Staff Mark Meadows, who said Tuesday that Pelosi and Mnuchin had made “good progress” on the stimulus talks.
The companies continued to file third-quarter earnings reports on Wednesday, with both electric car maker Tesla and burrito chain Chipotle providing information about their businesses to investors.
Elon Musk’s Tesla reported earnings per share of 76 cents for the fifth straight quarter versus the consensus estimate of 57 cents expected by analysts polled by Refinitiv. The company had previously reported that it had delivered 139,300 vehicles in the quarter, a new record for Tesla.
CEO Musk noted on the company’s earnings statement that Tesla plans to ship cars from new factories in Brandenburg, Germany and Austin, Texas starting in 2021, but that production might be slow at first. The share gained 5% in premarket trading.
Chipotle Mexican Grill posted a 4% decrease in equity in expanded trading after a shift in supply orders increased costs and resulted in a decrease in beverage sales in the third quarter.
Futures came under pressure overnight after US officials said Iran was taking steps to meddle in the US presidential election and Russia received American voter information.
In particular, National Intelligence Director John Ratcliffe said Iran “sent fake emails to intimidate voters, incite riot and harm President Donald Trump”.
The announcement by the country’s top intelligence officials came amid an already fierce election season, adding to uncertainty as the US tries to manage the health and economic consequences caused by the coronavirus.
The off-hours movements followed the losses on Wall Street during Wednesday’s regular session. The Dow Jones Industrial Average fell 97.97 points, or 0.4%, and returned more than 100 points earlier in the day. The S&P 500 fell 0.2% while the Nasdaq Composite was down 0.3% on Wednesday.
The fate of coronavirus relief may be related in part to reports on the health of the U.S. labor market, with the latest update of total unemployment claims due on Thursday at 8:30 a.m. ET.
Economists polled by Dow Jones assume that the Department of Labor will expel 875,000 applicants for state unemployment insurance for the first time in the week ending October 17.
The government last week reported the highest number of so-called initial filings since August 22, signaling that the recovery from the Covid-19 recession may be easing.
The department also reported at the time that there were more than 10 million Americans who had previously applied for unemployment but were still receiving benefits.
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