Stock futures turned around to trade higher on Monday morning, after opening sharply lower Sunday evening, after a weekend of riots spread from Minneapolis to New York City, Philadelphia, Atlanta, Chicago and Los Angeles following the death of George Floyd.
Equity futures were indicating gains of 0.4 percent, or 100 Dow points.at 3:15 a.m. ET. Dow futures tumbled over 200 points, or 1 percent, in the opening minutes of trading while S&P 500 futures and Nasdaq futures fell 0.99 percent and 1.06 percent, respectively. The benchmark S&P 500 has gained 6.31 percent over the last two weeks, and sits 10 percent below its February peak.
Stocks are being supported by the fact that the conflict between the U.S. and China hasn’t escalated.
Violent riots sprung up in more than a dozen U.S. cities over the weekend, causing the deployment of 5,000 National Guard members in at least 15 states.
|JPM||JP MORGAN CHASE & CO.||97.31||-2.55||-2.55%|
CEOs including JPMorgan’s Jamie Dimon and Starbucks’ Kevin Johnson communicated with employees about “racial injustice” in memos and internal forums.
Meanwhile, Nike and Nordstrom decried the death of George Floyd as many stores were destroyed by looters.
President Trump, in response to the unrest, announced via a tweet America will be designating the left-wing political activist group Antifa as a “terrorist organization.”
Investors will also focus on space-related stocks and exchange-traded funds after the successful SpaceX and NASA astronaut launch.
|SPCE||VIRGIN GALACTIC HOLDINGS INC.||17.04||+0.57||+3.46%|
|ROKT||SPDR SERIES TRUST S&P KENSHO FINAL FRONTIERS||31.01||-0.17||-0.55%|
|UFO||PROCURE ETF TRUST II PROCURE SPACE ETF||19.60||-0.30||-1.51%|
In Asian markets on Monday, Japan’s Nikkei traded higher by 0.8 percent, Hong Kong’s Hang Seng added 3.4 percent and China’s Shanghai Composite rose 2.2 percent.
In Europe, London’s FTSE is gaining 1.5 percent and France’s CAC added 1.6 percent. German markets were closed for a holiday.
Elsewhere, West Texas Intermediate crude oil futures pared earlier declines to slide 0.1 percent at $35.43 per barrel.
The energy sector research firm Energy Intelligence reported OPEC+ will consider the 9.7 million barrel per day production cut by an additional one to two months. The size of the cut is scheduled to be reduced to 8 million barrels per day beginning in July.
Oil is coming off its best month ever with a gain of 88 percent.
On Monday, the state of the U.S. economy will be in focus when key reports on U.S. manufacturing get released including Manufacturing PMI and ISM manufacturing, as well as data on construction.