Dow Futures Win as Investors Seek Profit on Target Minutes, Lowe and Fed

Tuesday the Dow
DJIA
-1.58%
it fell 390.51 points, or 1.6%, to finish at 24,206.86, near a session low, while the S&P 500 index
SPX
-1.04%
he lost 30.97 points, or 1.1%, to finish at 2,922.94. The Nasdaq composite index
COMP,
-0.53%
it fell 49.72 points, or 0.5%, to close at 9,185.10.

What drives the market?

Markets were vulnerable to declines after the main benchmarks managed to reverse many of the losses suffered in March.

Tuesday, the fragility of recent gains for indices and trade in the range fully manifested after a sluggish day that turned into a slowdown of almost 400 points for the Dow Jones, in the middle of a report of Stat News which offered a more sober view of the phase. -one is the result of Moderna Inc.
MRNA
-10.41%

candidate for the coronavirus vaccine.

Hope for a cure for the deadly pathogen was seen as one of the key elements necessary for the economy affected by coronaviruses to recover in good faith in the second half of 2020 without fear of reprisals for the viral epidemic in the fall or winter. he said.

Meanwhile, investors seem to be focusing on the bright spots and turning their attention to the larger US reopening plans.

Ohio Governor Mike DeWine said on Tuesday that he was lifting the order to stay at the state home and would instead encourage residents to stay home whenever possible and continue to distance themselves socially.

Many other states were easing beach restrictions before Memorial Day vacation, and parts of New York were entering the initial stages of reopening after Governor Andrew Cuomo said the epidemic had returned to its starting point. that it took off in late March. The Wall Street Journal reported that Connecticut will begin easing restrictions on restaurants on Wednesday.

In other parts of the world, South Korea was preparing for students to return to secondary school after the pandemic.

However, investors may face a long and uneven path to recovery from a possible recession. The Congressional Budget Office said it is forecast GDP to fall 38% in second quarter, a forecast more or less in line with Wall Street economists, and for a federal budget deficit reaching $ 2.1 trillion in fiscal year 2020.

Secretary of the Treasury, Steven Mnuchin, said on videoconference to the Senate Banking Committee and the President of the Federal Reserve, Jerome Powell, Tuesday that delaying the reopening could damage the vitality of the United States. “There is a risk of permanent damage,” he said. However, Powell said it is important for the economy that Americans feel safe. “The number one thing, of course, is that people think it’s safe to go back to work so you can get out,” said the head of the Fed.

“If we don’t touch public health, there is a limit to what we can do to solve this problem,” Boston Fed president Eric Rosengren told MarketWatch on Tuesday.

While several Fed officials have already spoken, including Powell, investors may want to take a closer look at the April 28-29 meeting of the Federal Open Market Committee, which sets policies, at 2:00 p.m. Eastern for more information on the outlook for the central bank.

What actions are targeted?

• Urban Outfitters Inc.
  URBN
  -4.52%
  Quarterly results were far below Wall Street estimates. The company reported a preliminary loss of $ 138.4 million in the first quarter, or $ 1.41 per share, compared to net earnings of $ 32.6 million, or 31 cents per share, in the same period. last year.
• Tesla Inc.
  TSLA,
  -0.69%
  It will increase the price of the “total self-drive” option on its electric vehicles worldwide by $ 1,000 from July 1, the company said.
• Luckin Coffee Inc.
  LK
  -18.40%
  expected to resume operations on Wednesday Nasdaq Inc.
  NDAQ
  -2.01%
  he said Tuesday evening. The Nasdaq stopped trading in the company’s shares on April 7. On May 15, Luckin Coffee received a foreclosure notice due to “public interest concerns” related to the “fabricated” transactions disclosed by the company in its annual report.
• Johnson & Johnson Inc.
  JNJ
  -0.99%
  He said Tuesday night that he would stop selling talcum baby powder in North America after a series of lawsuits alleging the product caused cancer.
• Target Corp.
  TGT
  -1.10%,
  Lowes Corp.
  L
  -1.86%
  are ready to report in the morning with L Brands Inc.
  KG
  -2.03%,
  Take-Two interactive software atvs.
  TTWO,
  + 4.95%
  and Expedia Group Inc.
  EXPE
  -3.58%
  is expected to report after the end of Wednesday’s regular session.