Tags: Economy News

Stimulus Bill; GDP Revisions; Stocks to Open Mixed

Senate Sends Stimulus Bill to President Trump

The United States Congress passed the $900 billion coronavirus relief bill. Congress is sending the bill to President Donald Trump for its signature into law.

In addition to that, the Senate also passed a $1.4 trillion spending bill. This will keep the government funded through September.

President-elect Joe Biden hinted he would push for a new support package as soon as he swears on his testimony. Their lawmakers on both sides acknowledged the shortcomings of the deal. 

Big questions about the funding for local governments are left unanswered. This also includes the potential liability of businesses whose employees catch the COVID-19 virus.

GDP Revisions 

At 8:30 AM ET (1330 GMT), the relatively empty data calendar will allow revised Q3 data for gross domestic product. It was to grab more attention than they might otherwise attract. 

The headline annualized growth figure is more likely to be revised up than down. This is from the initial reading of 33.1% if recent experience is any guide. However, new facts have now largely overtaken the data.  

Analysts focus on core personal consumption expenditures. These provide a more accurate reflection of experienced inflation in the current circumstances. That is because it adjusts for short-term changes to spending patterns.  

The first reading had this index up 3.5% on the year. It was well above the official inflation rate. Existing home sales data are also due at 10 AM ET, separately.

The U.K. revised up its Q3 numbers overnight to show a quarter-on-quarter rebound of 16%. It still left output down 8.6% on the year.

Stocks to Open Mixed

Stock markets in the U.S. will open mixed after an unexpected resilient performance on Monday. The country’s banks preparing to resume stock buybacks calmed fears about a fresh surge in the pandemic. That is from the new strain of the COVID-19 virus detected in Europe and Africa.

Dow Jones futures fell 37 points, or 0.1% by 6:40 AM ET (1140 GMT). S&P 500 futures rose 0.1% and NASDAQ futures climbed 0.4%.

To be in focus later may include Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB). After new revelations about the extent of their cooperation in the online advertising market, they have come to dominate. 

Traders also want to see whether SolarWinds (NYSE:SWI) stock can build on its 13% bounce on Monday. This is after a 40% drop in response to news about a devastating hack on U.S. government agencies that exploited weaknesses in its system.

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