US pre-open: Futures point to positive open as economic relief talks continue

Wall Street futures had stocks opening higher ahead of the bell on Tuesday as investors monitored talks between lawmakers in Washington regarding another economic relief package.

As of 1230 BST, Dow Jones futures were up 0.63%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.68% and 0.76% firmer, respectively.

The Dow closed 8.92 points higher on Monday as the potential for further economic stimulus and various novel coronavirus vaccine prospects also helped the Nasdaq Composite turn positive for the year.

Tuesday's main focus will be much the same as yesterday, with market participants monitoring talks on the Hill regarding another Covid-19 relief bill. US lawmakers were under pressure to pass new legislation before the end of July, when the $600 per week federal unemployment insurance benefits programme will expire.

On the virus front, the US recorded just less than 60,000 new infections on Monday, with a further 531 people losing their lives to the pandemic, according to John Hopkins University. Global cases have now topped 14.7m - 3.83m of which were in the US.

News from across the pond was also in focus as EU leaders agreed to a €750bn rescue package for the bloc following four days of talks, marking a significant moment for the European Union.

Markets.com's Neil Wilson said: "The agreement is a classic EU fudge that papers over the schisms but is nonetheless a step forward towards ever closer union, and this time it's fiscal.

"This has been hailed as Europe's 'Hamiltonian moment' as it involves mutual debt issuance. It's not quite that – we are not talking about mutualisation of countries existing debts. Nevertheless, it sets an important precedent in securing the idea of fiscal coordination, if not union."

In corporate news, IBM shares were higher in pre-market trading after posting some better-than-expected second-quarter earnings, while Coca-Cola shares ticked higher before the open as a drop in quarterly earnings was offset by increased demand amid the easing of lockdown measures across the globe.

Still to come tobacco giant Philip Morris will report earnings before the start of trading, while United Airlines will report after the close.