Stock Futures Mixed After Record Highs for Dow and S&P500

19 Apr 2021 · 3rd Party Analysis

Stock Futures Mixed After Record Highs for Dow and S&P500


Stock Futures Mixed After Record Highs for Dow and S&P500

In Summary

  • US equities seek direction on Monday after a strong last week
  • Earnings season continues with Coca-Cola and others reporting today

US stock futures are trading mixed and fairly muted in the pre-market hours on Monday. The Dow Jones Industrial Average index at one instance this morning slid more than 100 points, or over 0.30%, while S&P500 futures declined around 0.20%. Nasdaq futures remain flat ahead of the opening today.

Equities are easing off their highs reached last week as investors brace for renewed volatility and the continuation of the earnings season this week. Both the S&P500 and the Dow Jones advanced last week to mark a streak of four weeks of gains. The broad-based S&P500 climbed 1.38% for the week, while Dow Jones rose 1.18% throughout the week. The Nasdaq Composite also ended the week in the green, higher by 1.1%. The index has advanced three weeks in a row.

Both the S&P500 and the Dow inched to record highs on Friday, boosted by better-than-expected earnings and increased hopes for a rapid and powerful recovery. On Friday, the blue-chip 30-stock index rose 164.68 points, or 0.5%, to 34,200.67, marking a three-day winning streak. The S&P500 advanced 15.05 points, or 0.4%, to finish at 4,185.47. The Nasdaq Composite index was trading in the red most of the day but managed to move into positive territory and closed higher by 13.58 points, or 0.1%, to 14,052.34. The tech-heavy index is floating 0.3% below its all-time high from February.

Major Corporations Gear Up to Provide Earnings Updates

Banks and other financial companies and investment firms kicked off the earnings season last week. Strong, record-breaking reports combined with rosy economic data propelled stocks to higher grounds. In addition, the positive momentum was supported by a significant drop in US Treasury yields.

Wall Street mainstays reported blowout financial results last week, including Goldman Sachs, JPMorgan, BlackRock, among others. The earnings season continues today with Coca-Cola, IBM, and Uniter Airlines set to release their data.

A whole host of companies are scheduled to provide their updates this week. Investors will be focused on first-quarter subscription figures for Netflix services when the video streaming platform reports quarterly results on Tuesday. Netflix added 37 million paying customers in 2020 and ended the year of the lockdowns with about 200 million subscribers.

Johnson & Johnson, the world’s biggest healthcare company worth over $425bn, also reports quarterly earnings on Tuesday. In January, the company forecasted a strong quarter that would be driven by increased sales of medicines combined with Covid-19 vaccines. J&J’s vaccine rollout was halted in the United States last week. So far, about 7 million doses of the J&J jab have been administered.

On the other side of the Atlantic, European stocks on Monday opened for trading looking slightly to the upside. Following a mixed trading session in Asia, European benchmark indexes are seeking to continue the upswing from last week. Later in the week, on Thursday, the European Central Bank will decide whether its efforts to sustain the economy need boosting. The European economy is still struggling to beat the coronavirus wave, while the US, China, and the UK are reopening, and their economies rebound.

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