U.S. stock futures dipped Tuesday as traders returned from the lengthy weekend and eyed additional company earnings updates.
How are stock index futures buying and selling
-
S&P 500 futures
ES00,
-0.29%
dipped 12 factors, or 0.3%, to 4006 -
Dow Jones Industrial Average futures
YM00,
-0.20%
fell 76 factors, or 0.2%, to 34340 -
Nasdaq 100 futures
NQ00,
-0.39%
eased 48 factors, or 0.4%, to 11561
On Friday, the Dow Jones Industrial Average
DJIA,
rose 113 factors, or 0.33%, to 34303, the S&P 500
SPX,
elevated 16 factors, or 0.4%, to 3999, and the Nasdaq Composite
COMP,
gained 78 factors, or 0.71%, to 11079. Markets have been shut on Monday to commemorate the Martin Luther King Jr. vacation.
What’s driving markets
The constructive begin to the 12 months confirmed indicators of fading as U.S. traders returned from an extended weekend.
The S&P 500 rose 4.2% within the first two weeks of 2023, with dealer sentiment underpinned by hopes that easing inflation will cut back the necessity for the Federal Reserve to extend borrowing prices by rather more.
“Markets have started off the year strong…While this can be an early sign of a sustained new uptrend, this type of move over the first two weeks after a bad year is not atypical,” mentioned Jonathan Krinsky, chief thecnical strategist at BTIG.
“The third week of the year following -10% years, however, is when things get more difficult. The average week 3 following -10% years is -0.63%, and when the first two weeks are positive like they are now, the average week 3 return is -1.03% and down 7 of 10 times,” Krinsky wrote in a word to purchasers.
For the time being the market’s focus might flip away from macroeconomic drivers like perceptions of Fed coverage trajectory and in direction of the microeconomic, because the fourth quarter earnings season picks up tempo.
Morgan Stanley
MS,
and Goldman Sachs
GS,
are among the many firms presenting their outcomes on Tuesday. S&P 500 mixture earnings are forecast to fall 2.3% within the fourth quarter, in keeping with S&P Global Market Intelligence.
U.S. financial updates set for launch on Tuesday embrace the Empire State Manufacturing Index due at 8:30 a.m. Eastern.
