U.S. stock-index futures fell on Tuesday, as investors continued to take profits while awaiting the outcomes of today's crucial Senate election runoffs in Georgia, which will determine whether the Democrats take control of the U.S. Congress as well as the fate of President-elect Joe Biden's legislative agenda.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

FXStreet notes that COVID-19 developments continue to be the main driver of the global economy. Short-term headwinds strengthen as covid infections stay high but the beginning of the vaccine roll-out provides brighter prospects for the future. Downside risk factors have come down following the UK-EU Brexit deal and lower risk of new US-China trade war with the election of Biden and economists at Danske Bank continue to be positive on equities over the coming year.

“We expect restrictions to be with us for most of Q1. An increase in social gatherings in December over Christmas and New Year has pushed the R rate above one again, but as social gatherings typically decline significantly in January, this should help to push R back below one. A new obstacle to controlling the virus spread has shown up, though, in the form of a more contagious variant of the virus which appears to have originated in the UK.” 

“On the positive side, the vaccination process has started and the most vulnerable groups are expected to have been vaccinated by the end of Q1 or early Q2. This should help reduce mortality and hospitalisation significantly. In addition, warmer weather will help to reduce contagion. We thus expect the removal of the majority of restrictions by Easter in early April, with immunity being adequately achieved by the time colder weather comes back in the autumn.”

“The number of risk factors have also come down over the past months. The UK and EU finally agreed on a last-minute Brexit deal and the election of Joe Biden as US president has removed the risk of a new US-China trade war. Hence, once the vaccine has been rolled out, the sky should be getting brighter for the global economy.”

McDonald's (MCD) initiated with an Outperform at Wedbush; target $240

Tesla (TSLA) downgraded to Underperform from Neutral at Exane BNP Paribas; target $340

Coca-Cola (KO) downgraded to Neutral from Buy at Guggenheim

Micron (MU) upgraded to Buy from Sell at Citigroup; target raised to $100

Bank of America (BAC) upgraded to Outperform from Peer Perform at Wolfe Research; target raised to $36

Freeport-McMoRan (FCX) upgraded to Buy from Hold at Argus; target $30

FXStreet reports that analysts at Credit Suisse note that the S&P 500 Index has completed a large bearish “reversal day” on increased volume to raise the prospect of a correction to the rally from late October, with key support seen at 3640/33. 

“S&P 500 has tested and rejected our next objective of a cluster of Fibonacci projection resistances in the 3765/85 zone for the completion of a large bearish ‘reversal day’ on increased volume and with a bearish RSI momentum divergence also in place we now look for a correction to the rally from late October.” 

“Support is seen at 3680 initially, then 3663, with more important support seen at the December lows and ‘neckline’ to a potential top at 3640/33. Only below here though would see a top established to raise the prospect of a more concerted correction lower with support seen next at 3594/90, then 3578.” 

“Resistance is seen at 3708 initially, with the immediate risk seen lower whilst below 3727/33. Above can ease the threat of a setback for a fresh look at 3765/85.”