Equity futures are unchanged as investors wait for financial data, earnings

Author: | Posted in Finance No comments

US stock index futures were unchanged in overnight trading on Monday, after the big averages began the week with subdued movements as investors melted a jump in returns.

Forward contracts linked to the Dow Jones Industrial Average received 18 points. S&P 500 futures increased by 0.03%, while Nasdaq 100 futures increased by 0.04%.

During regular trading, the Dow fell about 13 points, or 0.04%, for its fourth negative session in the last five. At today’s highest, the 30-share index rose about 136 points. The S&P 500 ended the day unchanged at 4,682.87. The benchmark index moved between gains and losses during the session, rising 0.3% at one point, while trading 0.21% lower. The Nasdaq Composite fell 0.04 percent. Russell 2000 was the relative inferior performance, decreased 0.45%.

Equity movements came when interest rates rose, with the yield on the 10-year government bond peaking at 1.62% while the 30-year government bond rose above 2%.

Fear of inflation weighs on the market after last month’s consumer price index showed its largest annual increase in more than three decades. Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute, said he believes inflation will slow in 2022, but that “the road to lower inflation [will] start with higher inflation in the first half of the year. “

“The stickier drivers of inflation are likely to persist, but our basic case is that they will not outweigh the improvement we expect in the transitional elements,” he wrote in a statement to customers.

Walmart begins a hectic week of retail revenue on Tuesday before the market opens, giving investors a look at how much consumers are spending. Home Depot also reports before the market opens, while Target will publish results on Wednesday.

A series of financial data will be released on Tuesday, including retail trade figures for October. Economists surveyed by Dow Jones expect sales to have increased by 1.5% last month, compared to 0.7% in September. Industrial production figures will also be released, as will NAHB’s housing market index survey.

On Monday afternoon, President Joe Biden signed $ 1 trillion two-part infrastructure note to law. The package includes financing for transport, broadband and public services.

The large averages come from their first negative week of six, but the shares are still trading around record highs. When Wall Street strategists look forward to 2022, some, including Morgan Stanley’s Michael Wilson, believe the picture looks subdued.

“With tightening financial conditions and declining profit growth, the 12-month risk / reward for the broad indices looks unattractive at current prices,” he said in a statement to customers on Monday. “On the other hand, strong nominal GDP growth should continue to provide many good equity-level investment opportunities for active managers,” he added. His 12-month base target for the S&P 500 is 4,400, which is 6% below where the index closed on Monday.

.