Market Snapshot: Dow futures climb as investors prep for earnings from Disney, others

How are benchmarks faring?

Futures for the Dow Jones Industrial Average YMM20, +0.98% were up 183 points, or 0.8%, at 23,754, those for the S&P 500 index ESM20, +0.82% were up 18.70 points at 2,844, a gain of 0.7%, while Nasdaq-100 futures NQM20, +0.78% were climbing 58.50 points, or 0.7%, at 8,854.

On Monday, the Dow DJIA, +0.11% managed a gain of 26.07 points, or 0.1%, to end at 23,749.76, and the S&P 500 SPX, +0.42% gained 12.03 points, or 0.4%, finishing at 2,842.74, with both benchmarks erasing declines of more than 1% for their sharpest intraday reversal since March, according to Dow Jones Market Data. The Nasdaq Composite COMP, +1.22% rose 105.77 points, or 1.2%, closing at 8,710.7,

What driving the market?

Markets looked to extend a slight uptrend that took hold late in the session Monday as investors dismissed reports on growing tensions between China and the U.S. and continued to focus on the prospect of businesses in the U.S. slowly opening up after a period of stultifying coronavirus lockdowns.

California Gov. Gavin Newsom on Monday said that clothing stores and a number of other retailers could open for curbside pickup on Friday, among a number of states that are slowly attempting to unwind measures put in place to limit the deadly contagious disease COVID-19.

Meanwhile, on the other side of America, New York Gov. Andrew Cuomo on Monday said the Empire State was seeing a drop in hospitalizations but wanted to see the numbers fall more substantially before commencing reopenings, which would come in phases.

Investors thus far have been sanguine about the outlook, despite signs that the road for the economy will be a long one, even if stocks have managed to rally from March lows.

A recent rebound in crude-oil prices CL.1, +6.37% also has apparently buttressed some buying sentiment, after the embattled energy sector, with a number of debt-laden energy producers, on the ropes amid a glut of oil and waning appetite due to the pandemic.

On Tuesday, investors will focus on some of the winners and losers of the viral outbreak, with Walt Disney & Co. DIS, -2.19% set to provide an early look at how theme-park closures, film delays and a lack of live sports has impacted its business.

Results from Electronic Arts Inc. EA, +3.14% and Activision Blizzard Inc. ATVI, +3.05%, videogame makers that have prospered amid stay-at-home protocols, will be eagerly watched for their outlooks. Meanwhile, earnings from alternative-meat maker Beyond Meat Inc. BYND, +3.96% will come as the meat supply-chain is being hammered by workers sickened by the viral outbreak and a decline in purchases from restaurants and big buyers.

On the economic front, investors will watch for a report on international trade due at 8:30 a.m. Eastern, and survey data on the services sector from the Institute for Supply Management at 10 a.m.

Meanwhile, the investors will hear from Chicago Federal Reserve President Charles Evans at 10 a.m., St. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic at 2 p.m.

Which other stocks are in focus?

• Shares of Hertz Global Holdings Inc. HTZ, +2.27% fell more than 20% in after-hours action Monday after the Wall Street Journal reported that the car rental company has hired an additional adviser to help with an imminent bankruptcy filing.
• Shake Shack Inc. SHAK, +2.07% saw its shares rise even as the company said it was seeing higher beef prices amid closures due to the COVID-19 pandemic. The company also reported a loss of $1.1 million, or 3 cents a share, compared with net income of $3.6 million, or 9 cents a share, in the year-ago quarter.
• Starbucks Corp.’s stock SBUX, -2.57% rose in after-hours trade after the coffee giant announced plans to reopen more than 85% of its U.S. stores by the end of this week.
• Toy maker Mattel Inc. MAT, +3.43%, DuPont de Nemours Inc. DD, -0.77%, Arconic ARNC, +3.86%, Wayfair W, +9.47% and Pinterest PINS, +8.50% also will report results on Tuesday.