Stock futures were lower early Friday as the outlook for additional fiscal stimulus remained uncertain.
Futures on the Dow Jones Industrial Average showed an opening loss of more than 200 points. S&P 500 futures fell 0.9%. The Nasdaq 100 futures were down 0.9%.
The S&P 500 was slated to drop for a third day on Friday as negotiations on a coronavirus aid contract dragged on. Legislators are trying to get a bill passed before the lifelines expire in late 2020, but disagreements still persist over state and local incentives, unemployment benefits and incentive controls.
Senate Majority Leader Mitch McConnell’s staff briefed Congress officials that Senate Republicans were unlikely to support a bipartisan $ 908 billion proposal, according to NBC News. Earlier Thursday, House spokeswoman Nancy Pelosi said bipartisan negotiations were “making great strides”.
“The tenor of the Capitol Hill headlines about stimulus sounded slightly better than Mon-Wed, but there is still no sign of a breakthrough,” said Adam Crisafulli, founder of Vital Knowledge, in a note Thursday.
The House passed a week-long extension of federal spending to avoid closing it until December 18 and to gain more time for a business cycle agreement.
The proportion of companies hardest hit by the pandemic recession fell in premarket trading on Friday. Carnival, United Airlines and Gap each fell more than 2% in premarket trading.
The Dow and S&P 500 are down 0.7% and 0.8% respectively this week, the pace of their first negative week in three. The tech-heavy Nasdaq Composite fell 0.5% over the same period and is facing its first week of losses in four years.
Without fresh impetus, millions of Americans could lose unemployment benefits in the New Year. Meanwhile, weekly jobless claims rose to 853,000 last week, the highest since Sept. 19, as new lockdown restrictions weighed on businesses amid rising coronavirus cases.
The futures losses even came when a key advisory body to the Food and Drug Administration recommended approval of Pfizer and BioNTech’s emergency coronavirus vaccine. The recommendation was the final step before the FDA grants final approval to widely distribute the first doses in the United States
Against the trend in early trading, Disney was. On Thursday, the company announced that its Disney + service has 86.8 million subscribers and is expected to have between 230 and 260 million subscribers by 2024. The share rose 7% in premarket trading.
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