U.S. stock futures were relatively unchanged on Tuesday morning following a three-day decline in the major averages. S&P 500 futures remained steady, while Nasdaq-100 futures saw a slight increase of 0.07% and Dow Jones Industrial Average futures ticked up by 0.03%.
Investors are reflecting on a positive session for the major averages on Monday, with the Dow Jones Industrial Average gaining 209.52 points, or 0.62%, and the S&P 500 advancing 0.24%. However, the Nasdaq Composite lagged behind, rising only 0.18%.
The upcoming release of the June consumer price index report on Wednesday and the June producer price index on Thursday will provide insight into whether the decline in inflation has continued and will impact the future direction of interest rates. Investors have already anticipated another quarter-point increase at the Federal Reserve’s July meeting, but are uncertain about the central bank’s actions at its September meeting following last week’s strong jobs data, which raised concerns about a potential return to rate hikes.
Solus Alternative Asset Management’s Dan Greenhaus commented on the situation, stating that the pause in rate hikes is meant to gather more information. He emphasized that the timing of rate cuts in the future is more significant for the risk landscape than one or two more hikes.
On the economic front, the NFIB Small Business Index for June, which measures business confidence, is set to be released on Tuesday. Economists predict a reading of 90.0, slightly higher than May’s level of 89.4.
The second-quarter earnings season will also kick off later this week, with results from major financial institutions such as JPMorgan Chase, Wells Fargo, and Citigroup, as well as BlackRock, PepsiCo, Delta Air, and UnitedHealth.
In after-hours trading on Monday, WD-40 Company saw a 4.7% increase following the release of its fiscal third-quarter results. The company reported $141.7 million in total net sales, a 15% increase from the previous year. CEO Steve Brass expressed satisfaction with the solid top-line growth in the third fiscal quarter after two quarters of flat-to-down sales.
Barclays has raised its 2023 price target on the S&P 500 to 4,150 from 3,725. Analyst Venu Krishna stated that while equities are expected to remain range-bound throughout the year, the Tech-centric rally is not expected to broaden to the rest of the S&P. The firm also increased its 2023 full-year earnings estimate to $218 from $200.
Overall, U.S. stock futures opened with little change on Monday night, with Dow Jones Industrial Average futures dipping 2 points, or 0.01%, S&P 500 declining 0.01%, and Nasdaq-100 futures rising 0.02%.
What factors are investors eagerly awaiting this week that could potentially impact interest rates?
Unchanged open for U.S. stocks on Tuesday, as futures were steady following a recent decline in the major averages. The S&P 500 futures remained stable, while the Nasdaq-100 futures experienced a slight increase of 0.07%. The Dow Jones Industrial Average futures also saw a small uptick of 0.03%.
Yesterday, investors were pleased with a positive trading session as the Dow Jones Industrial Average gained 209.52 points, or 0.62%, and the S&P 500 advanced 0.24%. However, the Nasdaq Composite lagged behind with only a 0.18% increase.
This week, investors are eagerly awaiting the release of the June consumer price index report on Wednesday and the June producer price index on Thursday. These reports will provide valuable insights into whether inflation has continued to decline and will impact future interest rates. Many investors have already factored in the possibility of a stationary open for U.S. stocks.
The steady hold of stock futures coupled with persistent optimism sparks a glimmer of hope for a positive market outlook. The unwavering confidence is a promising sign for investors and hints at potential growth in the near future.
The steady performance of stock futures amidst persistent optimism in the market reflects a positive outlook for investors. Ready to ride the wave of opportunities ahead.