Technology stocks boosted U.S. stock futures before a week of earnings success, with investors expecting results from companies like Apple, Tesla and Facebook.
Futures tied to the S&P 500 rose 0.3%, pointing to a gainful extension that caused the index to close nearly 2% further and set a record on Friday. Nasdaq-100-linked futures advanced 1%, suggesting a rebound in technology stocks after the opening bell.
China’s most valuable internet company, Tencent Holdings, jumped nearly 11% to a record in Hong Kong trade. Tencent’s portfolio company, Kuaishou Technology, a video recording app similar to TikTok, announced a IPO that could value it at about $ 60 billion. Shares in Amsterdam of the technology investment group Prosus, one of Tencent’s largest shareholders, rose 5.5%.
More than a fifth of the broad S&P 500 index and one-third of Dow Jones Industrial Average components are expected to post profits this week. Kimberly Clark, maker of Kleenex and Huggies, will report Monday before the market opens. Starbucks, Verizon and Microsoft are scheduled for Tuesday. Other major technology companies will report later in the week, including Apple, Tesla and Facebook on Wednesday.
“The way management communicates its prospects will be key to the markets,” said Sophie Chardon, Lombard Odier’s multi-asset strategist. “Investors will have to weigh the possibility of getting vaccinated with the reality of the new closures” and the impact on each company.