Futures tied to the Dow Jones Industrial Average gained 24 points, or 0.07 per cent, S&P 500 futures rose 0.03 per cent and Nasdaq 100 futures hovered below the flat line at 0.01 per cent
U.S. equity futures were flat on Monday after the major averages logged their best week so far this year.
Futures tied to the Dow Jones Industrial Average gained 24 points, or 0.07 per cent. S&P 500 futures rose 0.03 per cent and Nasdaq 100 futures hovered below the flat line at 0.01 per cent.
All of the major averages were coming off their best weeks of the year so far, also striking a positive note to start November trading. The Dow closed the week at 34,061.32, 5.07 per cent higher in its most winning week since October last year. The S&P gained 5.85 per cent to 4,358.34 and the Nasdaq Composite closed the week 6.61 per cent up at 13,478.28. It was the best week since November last year for both indexes.
Oversold conditions, solid earnings, hope for a halt to the Fed’s rate-hiking campaign, and a sizable drop in interest rates have brought buyers back into the market, said LPL Financial’s Adam Turnquist.
A soft monthly jobs report also led bond yields down, giving a boost to equities. Although the week ahead will be light on economic data and company earnings, seasonal tailwinds could aid further the recovery in stocks. November is the best-performing month for the S&P 500, as per the Stock Traders’ Almanac. Turnquist noted it also kicks off the best six-month return period for the market since 1950. The S&P 500 has generated an average return of 7 per cent from November through April since then, Turnquist added.
Earnings season is winding down, with 400 S&P 500 firms having already reported their quarterly financial results. Investors this week are still looking forward to updates this week from Walt Disney, Wynn and MGM Resorts, Occidental Petroleum and D.R. Horton.
In the meantime, traders will also be watching Fed Chair Jerome Powell, who is set to speak twice in the coming days. Last week the central bank kept rates unchanged for a second consecutive meeting as bond yields slipped, and investors are hoping its rate-hikes may be over.
