Stock futures flat in overnight trading as holiday-shortened week continues

Traders work the floor of the New York Stock Exchange.

NYSE

Stock futures were flat in overnight trading on Monday following a strong session on Wall Street fueled by positive vaccine news.

Futures gained just 20 points on the Dow Jones Industrial Average. S&P 500 futures were slightly changed and Nasdaq 100 futures gained 0.1%.

Investors closed the week on a high note on Monday to reopen trades amid vaccine optimism. The Dow rose more than 300 points for its best day in a week, while the S&P 500 climbed 0.6%. The Tech-Heavy Nasdaq Composite topped with only 0.2% gain.

The small-cap Russell 2,000 bounced 1.9%, reaching another record among rotation among beaten-down companies.

Investors appreciated the more promising developments on the Kovid-19 vaccine front. AstraZeneca said that interim analysis showed that its vaccine had an average efficacy of 70%, with strong results from Pfizer-BioNotech and Modern.

After the news broke, Major Average hit its season high that would name Joe Biden former Treasury Secretary Janet Yellen as Treasury Secretary. Many view Yellen as a market-friendly alternative that she historically oversaw a long economic expansion with low-interest rates and is likely to pursue further fiscal stimulus.

“I think this is a strong indication that Biden will focus on rebuilding the economy and following aggressive regulatory policy,” said Ed Mills, Washington policy analyst at Raymond James. “That would be an effective voice of more fiscal support versus someone who was seen as partisan … I’d say it’s a positive development for the market, but more important for the economy overall.”

Nevertheless, investors weighed vaccine news against a resurgence in new coronovirus cases, which prompted some Wall Street firms, including Goldman Sachs and JP Morgan, to moderate their near-economic outlook.

According to a CNBC analysis of data from Johns Hopkins University, the US holds a consistent record for recording Kovid-19 infections, with a national seven-day average of 170,855 people on Sunday.

Investors will monitor a large portion of earnings from retailers before the holiday season, including Best Buy and Dick Sporting Goods as well as the bell as well as Gap and Nordstrom following the closed Tuesday.

US markets will be closed for the Thanksgiving holiday on Thursday and a short session on Friday.

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