Stock futures were nearly flat on Tuesday after a strong start to May as investors piled into stocks that would benefit the most from an economic reopening.
The futures on the Dow Jones Industrial Average remained unchanged. S&P 500 futures lost 0.1% while Nasdaq 100 futures lost 0.4%.
Pfizer stock rose 1% in premarket trading after posting quarterly results that beat expectations and raised its guidance for 2021. CVS Health stocks rose 3% after the pharmacy chain and insurance company also raised their forecasts.
The move in futures followed solid gains for the Dow on Monday. The 30-share benchmark gained more than 200 points, while the S&P 500 gained 0.3%. Retail stocks led the market, with Gap and Macy’s gaining more than 7%. Dillard’s rose nearly 10% while Urban Outfitters and Kohl’s both rose more than 5%.
“Boeing and Delta have seen strong trading activity as investors may take advantage of price declines and look to reopenings,” said Chris Larkin, chief executive officer, trading and investing products, E-Trade Financial.
States continued to relax restrictions on pandemics while the vaccine was being rolled out. New York Governor Andrew Cuomo announced that most capacity restrictions in New York, New Jersey and Connecticut will be lifted, while 24-hour subway service in New York City will resume later this month.
Florida Governor Ron DeSantis signed an executive order on Monday immediately lifting the state’s remaining health restrictions.
The Dow and S&P 500 were just seeing their month-long gains, taking their gains more than 11% each in 2021.
“Many of the factors driving markets persist, including vaccine optimism, economic reopening, and accelerating earnings, although inflation and valuation concerns remain,” said Mark Hackett, chief of investment research at Nationwide.
Warren Buffett said Saturday that he sees “very significant inflation” in Berkshire Hathaway’s corporate collection amid the economic recovery.
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