Stocks Futures Steady After a Record-Setting Day for Dow, S&P500

13 Aug 2021 · 3rd Party Analysis

Stocks Futures Steady After a Record-Setting Day for Dow, S&P500


In Summary

  • Equity futures hover near unchanged levels as US traders prepare to enter the day
  • Dow Jones and S&P500 on track to end the week in positive territory, Nasdaq slightly below the flatline

Futures contracts tied to the main stock gauges held firm and slightly to the upside in pre-market trading on Friday. Both the Dow Jones Industrial Average and the S&P500 are on pace to finish the week in the green, while the Nasdaq Composite’s weekly performance has been slightly negative so far into the week.

Futures on the Dow Jones rose about 50 points, while S&P500 futures advanced a little over 4 points. Nasdaq futures were higher by roughly 12 points ahead of the opening bell in New York today.

Strongly bullish market sentiment has narrated this week’s movement in the blue-chip Dow and the broader S&P500. Both stock benchmarks logged their third straight day of record closings yesterday, powered by elevated expectations over investments in infrastructure as part of the Senate-approved $1tn infrastructure bill.

Underpinning the positive market mood on Thursday, the Labor Department released its latest initial jobless claims report. Filings for unemployment benefits dropped to 375,000 for the previous week, down from 387,000 a week earlier. The report was cheered by traders and investors who increased their risky bets on stocks across the board.

Bitcoin and Altcoins Stage a Rebound

The S&P500 ended higher by 13 points, or 0.3%, setting a new record close of 4,460.83. The Dow Jones also set a new closing high of 35,499.85 after the relatively small gain of fewer than 15 points, or less than 0.05%, on the day. The Nasdaq Composite outperformed its peers, compensating for a two-day losing streak. The tech-driven benchmark added 0.35% to close at 14,816.26.

The 30-stock Dow and the S&P500 are set to end the week on a high note after gaining 0.8%, and 0.6%, respectively, through Thursday. The Nasdaq Composite so far underperforms for the week, down 0.1%.

In individual stock action, Airbnb and Disney reported quarterly earnings results on Thursday after the closing bell. Airbnb’s revenue for the quarter ended June arrived at $1.34bn, almost four times higher than in the year-ago quarter.

The result surpassed Wall Street’s expectations for revenue of $1.26bn. Still, the company reported a net loss of $68mn, an improvement from the net loss of $576mn for the same quarter in 2020 when the world was under pandemic restrictions and travel was widely abandoned.

Airbnb’s stock declined about 4% in after-hours trading as the company’s guidance pointed to a potential weakness in travel activities for the current trimester due to the recent spread of the Delta variant of coronavirus.

Disney beat profit expectations with a reported profit of $918mn, or 50 cents a share for the three months ended June. Disney’s share price advanced about 5% in after-hours trading to levels near $190 per share.

Meanwhile, in Europe, stocks continue their upside swing as the region-wide Stoxx 600 Europe climbed above 476.00 for the first time in history. The pan-European benchmark index is on pace to register its 10th straight day of gains today.

Bitcoin and alternative coins are staging a rebound today after prices for crypto assets slipped broadly on Thursday. Bitcoin has added more than 4% to its price today and is changing hands at $46,400 per coin. Ether is also trading higher, up nearly 6% so far in the day as the price gravitates toward $3,250 per token.

Gold on Friday remains well bid for a third consecutive day. The precious metal’s price currently hovers near $1,760 per troy ounce, up about 0.3% on the day.

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