Saturday, 4 Jul 2020

Stock futures hit three-month high on prospects of economic recovery

(Reuters) – U.S. stock index futures hit a three-month high on Tuesday as hopes of a rebound from a coronavirus-led economic slump prevailed over fears of disruption from widespread protests over race in the country.

Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc (AAL.O), United Airlines (UAL.O), Norwegian Cruise Line (NCLH.N) and Carnival Corp (CCL.N), climbed between 3.1% and 5.0% in premarket trading.

Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 .SPX climb about 38% from its March lows, leaving it only about 11% below its Feb. 19 record high.

Investors, however, are keeping a close eye on Sino-U.S. tensions and protests in the United States over the death of a black man in police custody.

Demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five U.S. police were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control of the streets.

At 6:15 a.m. ET, Dow e-minis 1YMcv1 were up 184 points, or 0.72%. S&P 500 e-minis EScv1 were up 19.25 points, or 0.63% and Nasdaq 100 e-minis NQcv1 were up 67.25 points, or 0.7%.

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