US pre-open: Futures point to early gains as Pelosi's deadline nears
Wall Street futures had stocks opening higher ahead of the bell on Tuesday after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin "continued to narrow their differences" in ongoing stimulus talks.
As of 1220 BST, Dow Jones futures were up 0.74%, while S&P 500 and Nasdaq-100 futures were 0.75% and 0.78% higher, respectively.
The Dow Jones closed 410.89 points lower on Monday after Pelosi gave Mnuchin just 48 hours to reach a deal on a stimulus package before the 3 November election.
Stimulus talks remained in focus before the open, with Tuesday marking the final day of Pelosi's deadline.
While Donald Trump increased his offer for an aid package to $1.8trn, Senate Republicans were still resisting a spending package of that size, while Democrats were seeking a package in excess of $2.0trn.
SpreadEx's Connor Campbell said: "It feels like we are entering a potentially choppy period for the markets. The US presidential election is about to become more of a pronounced presence, especially since a lack of pre-vote stimulus package – Nancy Pelosi's 48-hour deadline ends tonight – means the outcome will dictate what kind of relief Americans receive.
"And at the same time the Covid-19 crisis is intensifying – and remember, we aren't in the acute months of winter yet either – with the ominous shuttering sounds of more restrictions in Europe joined by rising positivity rates in several prominent US states."
Earnings were also in focus again on Tuesday as Procter & Gamble posted a 9% increase in quarterly revenues as the Covid-19 pandemic continued to boost demand for cleaning and laundry products, while tobacco giant Philip Morris reported a 21.3% increase in diluted earnings per share despite witnessing a 2.6% decline in net revenues.
Still to come in corporate results, Raytheon Technologies, Lockheed Martin, Snap and Netflix will also report earnings on Tuesday.
On the macro front, building permits and housing starts figures for September will be released at 1330 BST, while Federal reserve heads Randal Quarles and Charles Evans will deliver comments at 1550 BST and 1800 BST, respectively.