Here are the most important news, trends and analysis that investors need to start their trading day:
Traders work at the New York Stock Exchange (NYSE) in New York City, August 3, 2021.
Andrew Kelly | Reuters
U.S. stock futures were little changed Tuesday, a day after the Dow Jones Industrial Average and S&P 500 pulled back from all-time highs. Dow futures traded just 23 points lower, or 0.1%. S&P 500 futures fell marginally, and Nasdaq 100 futures climbed 0.1%. The tight trading range comes as traders monitor a recent spike in U.S. Covid cases, as the highly contagious delta variant spreads across the country. The moves also come as the corporate earnings season winds down.
Senate Majority Leader Chuck Schumer (D-NY) speaks to reporters about the bipartisan infrastructure bill at the U.S. Capitol in Washington, July 28, 2021.
Elizabeth Frantz | Reuters
The Senate is expected to vote on a $1 trillion bipartisan infrastructure plan Tuesday at 11 a.m. ET. The bill — which includes $550 billion in spending to improve the country’s roads, bridges, airports and waterways — has been highly anticipated by investors as it could give the U.S. economy another boost in its post-pandemic recovery. The Senate will then move toward passing a $3.5 trillion budget resolution, Majority Leader Chuck Schumer said Monday. The spending plan includes investments in paid leave, child care and green energy.
Pedestrians pass in front of an AMC theater in New York.
Scott Mlyn | CNBC
AMC shares jumped more than 7% in the premarket on the back of better-than-expected second-quarter results from the move theater chain. The company posted a loss of 71 cents per share on revenue of $444.7 million. Analysts expected a loss of 91 cents per share on revenue of $382.1 million, according to Refinitiv. AMC also unveiled deal with Warner Bros. to showcase the studio’s entire 2022 in theaters for 45 days. However, CEO Adam Aron said AMC is “yet out of the woods.” AMC shares have benefited massively from the meme-stock craze this year, surging nearly 1,500% in 2021.
A medical worker in a protective suit collects a swab from a resident during a citywide nucleic acid testing following new cases of the coronavirus disease (COVID-19) in Wuhan, Hubei province, China, August 3, 2021.
Stringer | Reuters
The world economy could face some headwinds as China tightens its Covid safety measures to mitigate a rise in daily cases, strategist David Roche told CNBC’s “Street Signs Asia.” “I think China is in the process of exiting its big recovery story from Covid, which of course is ahead of the world … and is now converging with a long-term growth trajectory which is much, much lower than what people became used to in China,” said Roche, president and global strategist at Independent Strategy. China’s National Health Commission reported Monday 143 new Covid cases in mainland China — the highest in one day since January — according to Reuters.
California Governor Gavin Newsom speaks during a news conference regarding the San Jose rail yard shooting in San Jose, California on May 26, 2021.
Amy Osborne | AFP | Getty Images
California Gov. Gavin Newsom could be facing an uphill battle to win a recall election, as the state rolls out new Covid-related restrictions and Democratic supporters become complacent. “Democrats have not had urgency, and that’s Newsom’s greatest challenge at this point,” Democratic consultant Michael Soneff said. Newsom has also faced criticism for his handling of the pandemic in California, where cases have been rising, particularly from Republican opposition.