US open: Tech stocks and gold set fresh highs

Wall Streets main stock market gauges were edging higher in early trading, buoyed by reports of possible further fiscal stimulus in the pipeline and some positive news on the pandemic front.

Overnight, the US President reportedly said that he might use his executive powers to extend augmented unemployment insurance benefits, a now expired moratorium on evictions and to declare a holiday on payroll taxes.

House of Representatives speaker, Nancy Pelosi, and US Treasury Secretary, Steve Mnuchin, were due to meet later on Tuesday to again discuss the details of a possible fourth round of fiscal stimulus with both sides having said that some progress was made during similar talks on Monday.

Some observers said that Democrats and Republicans remained far apart on their positions, with the former pushing for $1trn in extra aid for state and local governments and the latter seeking protections for employers against lawsuits related to Covid-19.

Against that backdrop, as of 1537 BST the Dow Jones Industrials was ahead by 0.31% to 26,746..47, while the S&P 500 and Nasdaq Composite were both higher by 0.22% to 3,301.71 and 10,926.81, respectively.

The Nasdaq had earlier hit a fresh record high at 10,940.5 - a fresh record high.

In parallel, front-dated West Texas Intermediate was up 0.85% to $41.35 a barrel on the ICE and December gold was jumping 1.09% to $2,007.9/oz. on COMEX.

There was also some good news on the pandemic front.

Data published the day before revealed a 19.2% fall in new Covid-19 infections to hit 45,600, for the biggest week-on-week decline since late July and with new cases down in 32 states plus Washington D.C..

Yet Ian Shepherdson at Pantheon Macroeconomics was cautious, highlighting a drop in testing in many hotspot states which he said left them vulnerable to new outbreaks.

To take note of, on Monday, some equity strategists, such as those at Morgan Stanley, had argued that a correction in stocks was likely before the 'bull market' resumed.

Among the corporate results that investors were expected to be following most closely were those from Walt Disney and Beyond Meat which were due out after the close of regular trading in New York.

Alternative-fuel truck manufacturer Nikola was also due to report earnings.

On the economic front meanwhile, the Commerce Department reported a 6.2% month-on-month increase in factory orders to reach an annualised rate of $437.21bn (consensus: 5.0%).

Dow Jones - Risers

Exxon Mobil Corp. (XOM) $42.96 1.67%
Boeing Co. (BA) $164.95 1.65%
McDonald's Corp. (MCD) $197.51 1.60%
Verizon Communications Inc. (VZ) $57.94 1.22%
Unitedhealth Group Inc. (UNH) $306.91 1.09%
Intel Corp. (INTC) $48.78 0.98%
Visa Inc. (V) $192.55 0.98%
Chevron Corp. (CVX) $85.62 0.96%
Apple Inc. (AAPL) $439.67 0.90%
Walmart Inc. (WMT) $130.07 0.60%