Tuesday’s Stock Market Open: US Equities Slip As Traders Look To Stimulus Progress

U.S. stocks fell on Tuesday as Democrat lawmakers and the White House continue talks over new relief bill.

The Dow Jones Industrial Average fell 16.25 points to 26,648.15, while the S&P 500 slipped 4.48 points to 3,290.13 and the Nasdaq Composite Index edged down 3.7 points to 10,899.10.

Traders will look to Washington for progress on a new COVID-19 relief package.

House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer held “productive” talks on the stimulus with White House chief of staff Mark Meadows on Monday.

“We are moving down the track,” Pelosi said, but added we “still have our differences.”

“We see U.S. stocks at risk of fading fiscal stimulus,” wrote BlackRock Investment Institute strategists led by Mike Pyle. “U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity.”

Eli Lilly (LLY) began a late-stage trial for its coronavirus antibody treatment, LY-CoV555.

Tech stocks have continued to outperform the broader market.

“Tech stocks have captured considerable attention for their gaudy, relative total return performance, but what is less appreciated is how ‘consistent’ they have been,” said Jim Paulsen, chief investment strategist at The Leuthold Group.

“What valuation is warranted by a sector whose business grows faster for reasons that are less dependent on overall economic conditions, and whose members generate remarkable excess returns with superior frequency, compared to any other sector in the stock market?”

Overnight in Asia markets finished higher, as China’s Shanghai Composite index edged up 0.11%; Japan’s Nikkei-225 gained 1.7%; and Hong Kong’s Hang Seng exchange rose 2%.

In Europe markets traded lower, as Britain’s FTSE-100 slipped 0.25%, while France’s CAC-40 fell 0.2% and Germany’s DAX fell 0.71%.

Crude oil futures dropped 1.15% at $40.54 per barrel, Brent crude fell 1.16% at $43.64. Gold futures gained 0.32%.

The euro slipped 0.28% at $1.173 while the pound sterling fell 0.62% at $1.2993.