U.S. stock index futures were modestly higher in overnight trading on Tuesday, after a session that saw stocks alternate between gains and losses. Futures contracts tied to the Dow Jones Industrial Average advanced 27 points, indicating a 41point gain at the open. SP 500 futures rose 0.07, while Nasdaq 100 futures were up 0.13. Stocks closed little changed on Tuesday as traders digested higher rates, possible additional stimulus measures and political turmoil.
The Dow Jones Industrial Average rose 60 points, or 0.2, to 31,068.69. The Nasdaq Composite ended the day up 0.3 and the SP 500 rose slightly to 3,801.19. Meanwhile, the yield on the benchmark 10year Treasury briefly traded at 1.18, its highest level since March. Given the rise, Credit Suisse recommended that investors favor procyclical sectors, including financials and energy. Rising rates could hurt growth stocks, however, and a number of tech heavyweights including Facebook and Apple declined during Tuesdays session.
Expectations for additional fiscal stimulus is one of the reasons behind the steady move higher in yields. Presidentelect Joe Biden is expected to release details on his economic plan on Thursday. Following Tuesdays muted session, the major averages remain lower for the week after Mondays slide. The Nasdaq Composite is the relative underperformer, down roughly 1 over the last two sessions. Small caps are, however, a bright spot, and the Russell 2000 is up 1.7 so far this week.
The moves come as…