S&P 500 futures remained near the flatline on Monday night, following a fifth consecutive winning session for the benchmark index. Investors are keenly awaiting additional earnings reports that could influence market dynamics. Futures associated with the broad index dipped approximately 0.1%, while Nasdaq 100 futures also experienced a slight decline of 0.1%. Meanwhile, Dow Jones Industrial Average futures decreased by 23 points, representing less than a 0.1% drop.
This movement in futures follows a modest gain of less than 0.1% for the S&P 500 on Monday, allowing the index to maintain its winning streak. The Dow added around 0.3% during the session, while the Nasdaq Composite experienced a slight decline of 0.1%. The three major stock indexes exhibited volatility, oscillating between gains and losses throughout the day.
The Dow witnessed a significant drop of over 240 points at its lowest point, only to rally nearly 300 points at its peak for the day. Both the S&P 500 and Nasdaq traded more than 1% down at their session lows before recovering in the afternoon trading. According to Larry Tentarelli, founder of the Blue Chip Daily Trend Report, recent market action indicates that “any pullbacks have turned out to be buyable," suggesting that "the bulls are back in control.”
Investors are preparing for a bustling earnings week, with approximately one-third of the firms listed on the S&P 500 set to announce their results between Monday and Friday. Notable attention is focused on the Big Tech companies, with Meta Platforms and Microsoft expected to report on Wednesday, followed by Apple and Amazon on Thursday.
So far this earnings season, over 36% of S&P 500 companies have released their results, with about 73% surpassing Wall Street expectations, as reported by FactSet. This figure is modestly below the five-year average of 77%, suggesting a competitive earnings landscape. Investors will be closely monitoring these outcomes to gauge market sentiment moving forward.
Additionally, traders will keep a close eye on key economic data scheduled for release on Tuesday morning. This includes updates on home prices, consumer confidence, and job openings, which could provide further insights into the economic environment and influence market trends.
