U.S. stock market futures fell in trading on Sunday night, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday.
Dow-linked futures contracts fell 69 points, or 0.2%. S&P 500 futures fell 0.3%, while Nasdaq 100 futures were 0.34% lower.
Shares hit earnings week as earnings exceeded estimates and solid economic data lifted major averages. S&P and Dow were up 1.38% and 1.18% last week, respectively, for the fourth consecutive week of earnings, while the Nasdaq Composite posted its third consecutive positive week.
The profit season began last week, when major banks reported quarterly results and a number of companies will have to report this week. Ten Dow components will be presented, along with 72 S&P 500 companies.
Coca-Cola, IBM and United Airlines are among the names that will report earnings on Monday.
While stocks are trading around record levels, UBS on Friday raised its forecast for the year. Now, the firm expects the S&P 500 to end 2021 at 4,400, which is about 5% above where the benchmark closed on Friday.
“While investing in historical highs may be daunting for some, we believe there are more benefits,” the firm wrote in a note to clients. “After two rounds of stimulus deployed in the quarter and the ongoing vaccination effort, there is growing evidence that US economic activity is recovering. The latest data on jobs, business sentiment readings and retail sales point to a strong recovery “.
The Russell 1000 growth index has surpassed the last month, gaining 10% compared to the 4% increase in the Russell 1000 Value index, recovering some of the recent losses after a jump in yields that caused a rotation of technology and growth-oriented areas. the market.
However, in the last three months, equity stocks continue to outperform, and Bank of America believes there are more advantages for the group. On Friday, the firm’s analysts said they were “staying with the stock,” noting that it is still trading at a “strong discount to growth despite recent strength.”
As for the coronavirus, Dr. Anthony Fauci, chief medical adviser to the White House, said he expects the U.S. to resume administration of the Johnson & Johnson vaccine. The Food and Drug Administration last week called on states to temporarily stop using the single-dose vaccine “with great caution” after six women developed a rare blood clotting disorder.
“My estimate is that we will continue to use it in some way,” Fauci said Sunday during an interview with NBC’s “Meet the Press.” “I doubt very seriously if they just cancel it. I don’t think that will happen. I think there will probably be some kind of alert or restriction or risk assessment.”
Bitcoin withdrew over the weekend after hitting an all-time high of $ 64,841 on Wednesday morning, according to Coin Metrics data. On Sunday evening the cryptocurrency traded at $ 55,805.
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