U.S. stock index futures rose on Sunday night trading as Wall Street prepares for the busiest earnings week, which will include reports from some of the largest tech companies.
Futures contracts tied to the Dow Jones Industrial Average gained 74 points, indicating a 91-point jump in the initial bell. S&P 500 futures were up 0.33%, while Nasdaq 100 futures were up 0.61%.
Shares ended Friday mixed: the S&P 500 and Dow ended in red while the Nasdaq Composite closed at a record high, although all three posted a gain for the week. The Dow posted its fifth positive week in six, while the S&P posted its third positive week in four. The Nasdaq advanced 4.19% last week, the best week since November and the fifth positive week in six, as Big Tech’s stock stocks pushed the index to a new all-time high.
The movement escalated when President Joe Biden tried to push a $ 1.9 trillion stimulus program that many Republicans in Congress oppose. Tax aid includes direct controls on millions of Americans, aid to state and local governments, funding for Covid vaccines and testing, an increase in the minimum wage, and improved unemployment benefits, among other things.
Lindsey Bell, chief investment strategist at Ally Invest, noted that any additional stimulus could lead to rising inflation.
“Right now, look at the signs of inflation as a temporary or longer-term trend. If it’s just a quick shock, we may see some market weakness without any major Fed action,” he noted. “On the other hand, persistently high inflation may force the Fed to consider raising interest rates and withdrawing market support.”
In an inflationary environment, Bell said investors should favor the consumer’s basic, energy and financial sectors. He added that real estate and gold are among the other assets that can help protect themselves from inflation.
This coming week, 13 Dow components and 111 S&P 500 companies will present their profits. Covered quarterly reports include those from Apple, Microsoft, Netflix, Tesla, McDonald’s, Honeywell, Caterpillar and Boeing.
According to data from Bank of America, of the S&P 500 components that have already reported profits, 73% have exceeded both sales and EPS. The firm said this follow-up is similar to last quarter, when the number of companies that beat it hit a record.
The number of coronavirus cases continues to rise in the United States and abroad, but many economists predict a return to growth later this year.
“We continue to expect a reduction in the risk of viruses due to mass vaccination along with fiscal support for consumer spending to lead to a mid-year consumption boom and strong growth in 2021,” said economist Jan Hatzius in charge of Goldman Sachs. a note to customers over the weekend. “We currently forecast GDP growth of + 6.6% in terms of the full year, 2½ p above the consensus,” he added.
However, the firm noted that while risks such as insufficient tax aid appear to be less likely, other risks remain. Hatzius cited consumers as being more cautious than expected, as well as the evolution of a vaccine-resistant virus strain as possible future market winds.
Biden surgeon general election said Sunday that the United States is competing to keep up as the coronavirus mutates.
“The virus is basically telling us that it will continue to change and we need to be prepared for that,” Dr. Vivek Murthy on “This Week” on ABC News.
“We need to be number one, do much better genomic surveillance so that we can identify variants when they appear and that means we need to duplicate public health measures like masking and avoiding meetings indoors,” he added.
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