U.S. Stock Futures Edge Higher on Presidents Day Holiday -- Update
February 15 2021 - 5:18AM
Dow Jones News
By Anna Hirtenstein
U.S. stock futures edged higher Monday, following the major
indexes' climb to close at record highs last week.
Futures tied to the S&P 500 rose 0.4%, signaling an
extension of last week's muted gains that sent the broad-market
index to an all-time high Friday. Contracts linked to the Dow Jones
Industrial Average advanced 0.5%. Markets in the U.S. are closed
Monday for Presidents Day holiday.
Stock markets have climbed this year as investors look ahead to
additional stimulus spending and an economic recovery as
vaccination programs are rolled out around the world. Democrats
plan to proceed this week with work related to President Biden's
$1.9 trillion coronavirus aid plan. World leaders are also set to
jointly discuss the pandemic response at a virtual meeting of
leaders from the Group of Seven industrialized nations on
Friday.
Investors are focused on "fiscal stimulus, monetary stimulus,
the recovery and earnings that are expected to come through in
2021," said Esty Dwek, head of global market strategy at Natixis
Investment Managers.
Monday is "going to be a quieter day with more of the same, more
upward moves," she added.
The corporate earnings season is also winding down. CVS Health,
Walmart and Palantir Technologies are expected to be among the
companies reporting earnings later in the week.
Oil prices rose to their highest since January 2020, before the
pandemic hit markets. Cold weather in Texas poses a risk to oil
output in the key shale-producing state, analysts said. Brent rose
1.4% to $63.28 a barrel and the U.S. benchmark, West Texas
Intermediate, added 2% to $60.59. Natural gas prices are up over
4%.
Bitcoin prices notched a record high over the weekend, trading
above $49,500, according to data from CoinDesk. The cryptocurrency
pulled back on Monday, easing back down to $47,805.
Overseas, the pan-continental Stoxx Europe 600 climbed 0.8%.
Italian stocks continue to rally for the third consecutive
trading session. The FTSE MIB index gained 0.8%. Mario Draghi was
sworn in as prime minister on Saturday and investors are widely
expecting him to push through with economic reforms.
The U.K.'s FTSE 100 was the best performing major stock index in
Western Europe, rising 1.4%. The British government said over the
weekend that it has reached its goal of vaccinating 15 million
people, prompting calls for a faster easing of lockdown
measures.
In a sign of investors' rising risk appetite, the yield on
10-year U.K. gilts rose to 0.576%, from 0.518% on Friday. Yields
rise when bond prices fall. The British pound strengthened 0.3%
against the dollar, trading close to a three-year high.
"We are at the head of the pack for vaccine-related news: it is
a big support for the U.K.," said Georgina Taylor, a multiasset
fund manager at Invesco. "For global investors revisiting U.K.
equities, this could play out for a while as it has been such a
laggard market."
In Asia, exchanges in mainland China and Hong Kong were closed
for the Lunar New Year holiday.
Japan's Nikkei 225 jumped 1.9% by the close of trading, rising
above 30000 for the first time in 30 years. Fresh data showed that
the Japanese economy expanded 3% in the fourth quarter due to a
recovery in domestic demand and exports, beating economists'
expectations.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
(END) Dow Jones Newswires
February 15, 2021 05:03 ET (10:03 GMT)
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