U.S. inventory futures on Monday held their floor after the S&P 500 lastly closed above the 5,000 mark within the tenth document end for 2024.
What’s occurring
-
Dow Jones Industrial Average futures
YM00,
-0.12%
fell 31 factors, or 0.1%, to 38.,717. -
S&P 500 futures
ES00,
-0.03%
have been unchanged at 5,044. -
Nasdaq-100 futures
NQ00,
-0.02%
edged up 4.75 factors, or lower than 0.1%, at 18,044.
The S&P 500
SPX
rose 1.4% final week, ending Friday above the 5,000 threshold for the primary time. The Dow
DJIA
eked out a weekly achieve of lower than 0.1%, whereas the Nasdaq Composite
COMP
jumped 2.3%.
See: S&P 500 reaches 5,000 for first time. Here’s what it means for the market.
What’s driving markets
Two-thirds by means of fourth-quarter earnings season, 76% of corporations have crushed bottom-line estimates, analysts at Jefferies mentioned.
“Though we spend plenty of time thinking, analyzing and charting indicators of sentiment, flows, performance and economic health, the reality is that earnings revisions really do the best job of divining what direction stocks are likely to go in. And that leads us to flag that it’s probably fundamentals, more than anything else, that are perpetuating the rally that started late last year,” mentioned Andrew Greenbaum, senior vice chairman of fairness product administration at Jefferies.
Tuesday’s launch of consumer-price-index knowledge might derail these fundamentals.
“The Fed continues to look forward to rate cuts to offset an expected tightening of financial conditions as inflation returns to 2%, but the timing and magnitude remains elusive given the strength of the economy and lingering uncertainty over the path of inflation,” mentioned Tim Duy, chief U.S. economist at SGH Macro Advisors.
Read: What traders stashing $6.5 trillion away in money ought to do as Fed pushes again on rate-cut expectations
Companies in focus
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Diamondback Energy Inc.
FANG,
-1.13%
and carefully held Endeavor Energy Resources LP on Monday confirmed reviews they’re combining in a deal valued at about $26 billion together with debt, that marks the newest huge oil merger. Diamondback shares have been up greater than 3% in premarket commerce.