U.S. stock-index futures Tuesday evening rose modestly, hours after the benchmarks suffered a pullback that eroded part of a powerful rally. Futures for the Dow Jones Industrial Average were up 0.2%, at 23,805 those for the S&P 500 index were rising 0.2% at 2,864.50, while Nasdaq-100 futures gained 0.3% at 8,950.25. Stocks lost steam into the close of the regular session Tuesday, with the Dow gaining 133.33 points, or 0.6%, to end at 24,883.09, the S&P 500 index advancing 25.70 points to finish at 2,868.44, a gain of 0.9%, while the Nasdaq Composite index adding 98.41 points, or 1.1%, to close at 8,809.12. The lose of momentum on Tuesday was attributed partly to comments from Federal Reserve Vice Chairman Richard Clarida, who said: "We're living through the most severe contraction in activity and surge in unemployment that we've seen in our lifetimes," in an interview on CNBC, referring to the coronavirus-induced slowdowns. "This is not a typical recession. It's going to be a very, very sharp contraction" in the second quarter," he explained. The remarks appeared sufficient to knock some of the stuffing out of an equity market that had been enjoying a sharp broad-based rally. However, the Fed's No. 2 did note that the "recovery could begin in the second half" of 2020. Meanwhile, President Donald Trump, speaking Tuesday evening at a Honeywell International Inc.(HON), where N95 masks and other personal protective equipment was being manufactured in Arizona, acknowledged reports that his administration may be phasing out the coronavirus task force. During an interview with Bloomberg on Tuesday, Vice President Mike Pence said "as states are reopening, we're seeing progress that we're making. Markets had been rising on easing of lockdown protocols in a number of U.S. states. However, worries about China-U.S. tensions, centered on Beijing's handling of the viral outbreak that was first identified in Wuhan in December, and lingering concerns about how adeptly companies will be able to adapt to the new era of COVID-19, combined to inject some uncertainty in equity markets. In corporate news, shares of entertainment giant Walt Disney & Co. (DIS) were down 2.3% in after-hours trade following the company's quarterly report showed that its profit dove more than 90% ( ) in the second quarter, with more than $1 billion in lost profit from its theme parks alone, which have been mostly shuttered due to the deadly infectious disease. Meanwhile, alternative-meat maker Beyond Meat Inc. (BYND) saw its shares surge more than 10% ( ) after the regular session Tuesday after it reported first-quarter net income of $1.8 million, or 3 cents a share, compared with a loss of $6.6 million, or 95 cents a share, in the year-ago period. Revenue grew 141% to $97.1 million from $40.2 million in the year-ago period.
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 06, 2020 00:13 ET (04:13 GMT)
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