US pre-open: Futures point to gains as states look to reopen, oil rallies
US futures had stocks opening higher on Tuesday as market participants again bet on the nation's economy open up and cheered a further recovery in oil prices.
As of 1240 BST, Dow futures were up 1.07%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.08% and 1.20% firmer, respectively.
The Dow closed 26.07 points higher on Monday after tech stocks led a late-session turnaround and an improvement in oil prices to comfortably above $20 per barrel also helped boost sentiment.
Investors were mindful of the potential for a second wave of Covid-19 cases on Tuesday as the state of California revealed on Monday that sever retailers would be allowed to offer a roadside collection of goods by the end of the week.
New York Governor Andrew Cuomo also said daily rates of hospitalisations and deaths were declining, indicating the Empire State was on "the other side of the mountain". However, Cuomo noted that the drop was not as steep as officials had hoped.
Also underlining sentiment, oil prices were up as much as 10% ahead of the bell as investors bet that the US economy had bottomed-out - with shares in likely beneficiaries of the news such as Ford accelerating gains in pre-market trading.
Oanda's Craig Erlam said: "Stock markets are making decent gains across Europe and Wall Street is preparing for a healthy open as well, with futures up around 1% as the bell nears.
"Production cuts combined with reopening measures across the US and Europe seem to be behind the rally in oil prices, although we're still at extremely low levels and capacity is still fast running out. Oil prices have hardly recovered though, with WTI still trading in the low $20 range, a level deemed disastrous not too long ago. It's easy to get too carried away with high single percentage gains when prices have fallen as far as they have. The real test will come in two weeks when the June contract expires."
In macro news, US trade balance figures will be published at 1330 BST, while the ISM's non-manufacturing PMI will be released at 1500 BST.
Federal Reserve heads Raphael Bostic, James Bullard and Charles Evans will make speeches throughout the course of the day.
On the corporate front, Activision Blizzard, Electronic Arts, AMC Networks, Beyond Meat, Royal Caribbean Cruises, Sprint, Walt Disney and Expedia will all report earnings on Tuesday.