Premarket: Apple is red

From the wsj's "Stock Futures Edge Down After Indexes Hit Records" posted early Tuesday:

U.S. stock futures edged down Tuesday, signaling that major benchmarks will pare back gains a day after they closed at record highs.

Futures tied to Dow Jones Industrial Average ticked down 0.4%. The index of blue-chip companies on Monday rose to an all-time high and closed just short of the 30000-point milestone level. Contracts linked to the S&P 500 also slid 0.4%.

Investors are likely taking a breather to lock in profits after sending the S&P 500 gauge to its second consecutive record close on optimism about new Covid-19 vaccines. Moderna’s experimental vaccine has proven 94.5% effective at protecting people from Covid-19, leading to renewed bets at the start of the week that the economy is likely to stage a sharp recovery from the coronavirus pandemic in 2021.

“There is still plenty of wind out there. It’s just a question of getting the sails right in order to catch it,” said Peter Dixon, senior economist at Commerzbank. “There’s always going to be the sense that the initial burst of enthusiasm is followed by a little bit of retrenchment.”

My take: Sugar high.


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