Stock market news live updates: Stock futures rise after report Trump administration is considering $1 trillion

Stock futures extended gains Tuesday morning followed a report that the Trump administration was poised to unveil a $1 trillion proposal for U.S. infrastructure work, in a move to help boost the domestic economy. A record jump in retail sales in May also helped fuel an early rally.

The early move higher in equity futures put stocks on track for a third straight session of gains. A day prior, stocks closed out Monday’s choppy session higher, with the Dow erasing earlier losses of as much as 762 points, or 3%, to settle 157 points higher.

The advance came after the Federal Reserve announced it was expanding its own stimulus program for the virus-stricken economy. The Fed said it would begin purchasing individual corporate bonds as part of its emergency lending program, expanding the Fed’s previously announced Secondary Market Corporate Credit Facility, which had until Monday only included purchases of exchange-traded funds.

“I think what they’re trying to get away from is the perception that they’re favoring one company or one industry over another so they try to spread it out,” Kathy Jones, chief fixed income strategist at Charles Schwab, told Yahoo Finance’s The Ticker of the announcement. “But again, the bonds have to meet their criteria, which means they’re not buying the lowest credit quality bonds in the high yield market. They’re going to be buying those with higher credit ratings and up to a five-year maturity.” 

The further move by the Fed helped spur risk-on trading across the major indices Monday, and at least temporarily diverted investor attention from signs of increasing coronavirus cases in some parts of the country. Texas and Florida each reported record new coronavirus cases on Sunday, and other states including Arizona and California have also recently seen renewed increases in cases with their own reopenings under way.

Travel and leisure stocks including American Airlines, Norwegian Cruise Line Holdings, Royal Caribbean International and Hilton – which have seen their shares mostly move in lockstep in recent weeks with states’ reopenings under way – gained in late trading.

8:30 a.m. ET: Retail sales jump 17.7% in May after April’s record slump

Retail sales surged in May over April following a record decline, in a sign that consumer spending was beginning to recover from a nadir amid the coronavirus pandemic.

Retail sales rose 17.7% in May, following April’s 16.4% drop over the prior month, the Commerce Department said in its advance report Tuesday. Consensus economists expected retail sales to rise 8.4% in May, according to Bloomberg data.

Excluding auto and gas sales, retail sales rose 12.4%, also better than the 5.1% rise expected in May. This measure of retail sales fell 16.2% in April over March.

7:28 a.m. ET Tuesday: Stocks pace toward third straight day of gains

Here were the main moves during the pre-market session, as of 7:28 a.m. ET Tuesday:

• S&P 500 futures (ES=F): 3,107.75, up 34.75 points or 1.13%
• Dow futures (YM=F): 26,222.00, up 417 points, or 1.62%
• Nasdaq futures (NQ=F): 9,901.00, up 100.5 points, or 1.03%
• Crude (CL=F): +$0.62 (+1.67%) to $37.74 a barrel
• Gold (GC=F): +$7.30 (+0.42%) to $1,734.50 per ounce
• 10-year Treasury (^TNX): +4.4 bps to yield 0.746%

6:02 p.m. ET Monday: Stock futures open higher

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:07 p.m. ET:

• S&P 500 futures (ES=F): 3,085.00, up 12 points or 0.39%
• Dow futures (YM=F): 25,926.00, up 121 points, or 0.47%
• Nasdaq futures (NQ=F): 9,828.75, up 28.25 points, or 0.29%

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Reprinted from Yahoo Finance, the copyright all reserved by the original author.