Dow Futures Up as S&P 500 Hits Record; Key Earnings Ahead
Dow Jones futures saw a modest increase on Sunday night, alongside rises in S&P 500 and Nasdaq futures, setting the stage for what appears to be a robust week in the stock market. This week is particularly noteworthy due to significant earnings reports from major companies such as Tesla (TSLA), ServiceNow (NOW), and Netflix (NFLX).
The stock market experienced a surge last week, with the S&P 500 and Dow Jones hitting all-time highs and the Nasdaq reaching its best level in two years. The rally was predominantly led by big tech companies, while small caps showed resilience, rebounding from support on Friday.
Despite a general lack of market breadth in 2024, strong market leadership has been evident, with numerous stocks exhibiting buy signals recently and many others poised for potential growth.
Key stocks like Apple (AAPL) and Cloudflare (NET) signaled early entries, and DraftKings (DKNG) is on the verge of doing the same. Investors are advised to gradually increase their market exposure, mindful of the impending earnings season.
The week ahead is packed with earnings reports from other significant players, including Intel (INTC), ASML (ASML), Lam Research (LRCX), KLA (KLAC), D.R. Horton (DHI), Paccar (PCAR), and United Rentals (URI), among others. These reports will provide insights into various sectors, from software and chips to areas beyond technology.
ServiceNow and United Rentals, along with ASML, feature on the IBD Big Cap 20, with Cloudflare stock being the IBD Stock Of The Day on Friday and DKNG stock on Thursday.
Dow Jones futures edged up by 0.15%, while S&P 500 futures rose 0.2% and Nasdaq 100 futures climbed by 0.6%. The 10-year Treasury yield experienced a slight dip to 4.11%. However, it's important to remember that overnight actions in Dow futures may not always reflect the actual trading in the next regular stock market session.
Last week, the stock market saw a positive trajectory, particularly towards the end, with significant gains across major indices. The Russell 2000, representing small-cap stocks, showed a slight decrease but recovered impressively from its 50-day line.
The 10-year Treasury yield saw a significant rise, indicating robust economic data and a cautious approach from the Federal Reserve and the European Central Bank on rate cuts. With the market currently seeing a less than 50-50 chance of Fed rate cuts starting in March, the impact on the ongoing market rally remains a key aspect to monitor.