fundamental News - DJI5R
U.S. stock index futures were mixed in early morning trading on Monday, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday.
Futures contracts tied to the Dow slid 80 points while S&P 500
futures traded below the flatline. Nasdaq 100 futures, on the other
hand, traded in mildly positive territory.
Stocks are coming off a week of gains as earnings topped estimates
and strong economic data lifted the major averages. The S&P and Dow
advanced 1.38% and 1.18% last week respectively for their fourth
straight week of gains, while the Nasdaq Composite posted
its third positive week in a row.
Earnings season kicked off last week when the major banks reported
quarterly results, and a host of companies are set to provide their
updates this week. Ten Dow components will report, along with 72 S&P
500 companies.
Coca-Cola, IBM and United Airlines are among the names set to report earnings on Monday.
Despite stocks trading around record levels, UBS on Friday lifted
its forecast for the year. The firm now envisions the S&P 500 ending
2021 at 4,400, which is roughly 5% above where the benchmark index
closed on Friday.
“While investing at all-time highs may be daunting for some, we
believe there is more upside ahead,” the firm wrote in a note to
clients. “Following two rounds of stimulus deployed in the quarter and
the ongoing vaccination effort, there is growing evidence
that U.S. economic activity is picking up. The latest jobs data,
business sentiment readings, and retail sales all point to a strong
recovery.”
The Russell 1000 Growth index has outperformed over the last month,
gaining 10% compared to the Russell 1000 Value index’s 4% rise, clawing
back some of the recent losses after a jump in yields sparked a
rotation out of technology and growth-oriented areas
of the market.
Over the last three months value stocks are still outperforming,
however, and Bank of America believes there’s more upside ahead for the
group. On Friday analysts at the firm said to “stick with value,” noting
that it still trades at a “steep discount
vs. growth despite the recent strength.”
On the coronavirus front, White House chief medical advisor Dr.
Anthony Fauci said he expects the U.S. will resume administration of the
Johnson & Johnson vaccine. The Food and Drug Administration asked
states last week to temporarily halt using the single
dose vaccine “out of an abundance of caution” after six women developed
a rare blood-clotting disorder.
“My estimate is that we will continue to use it in some form,”
Fauci said Sunday during an interview on NBC’s “Meet the Press.” “I
doubt very seriously if they just cancel it. I don’t think that’s going
to happen. I do think that there will likely be some
sort of warning or restriction or risk assessment.”