In the early hours of Monday morning, Dow Jones futures showed minimal changes, mirroring the stability seen in S&P 500 futures and Nasdaq futures. The upcoming week promises a flurry of economic news, particularly in the realm of earnings reports.
Last week witnessed the continuation of the stock market rally, marking fresh record highs for the Dow Jones and S&P 500 on Friday. However, the Nasdaq faced challenges in maintaining its upward trajectory after midday on Wednesday.
A significant wave of tech earnings is anticipated this week, featuring major players such as Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Advanced Micro Devices (AMD), and Novo Nordisk (NVO). Among these, Microsoft holds a particularly crucial position.
Simultaneously, the Federal Reserve is scheduled for a meeting on Tuesday and Wednesday. While no immediate policy actions are expected, policymakers might provide insights into the potential timing of Fed rate cuts. The market speculates a March rate cut, making it a closely watched development. Additionally, the week is packed with economic data releases, with the December jobs report scheduled for Friday.
Given this substantial influx of information, investors may opt to exercise caution and refrain from making significant portfolio adjustments until the impact of these events becomes clearer.
Noteworthy mentions include Meta and NVO stock on IBD Leaderboard, MSFT stock on SwingTrader and IBD Long-Term Leaders, and Google stock, Meta, Microsoft, and Novo Nordisk on the IBD 50. Both Meta stock and Google are listed on the IBD Big Cap 20.
Examining the current Dow Jones Futures, they exhibited a slight decline compared to fair value. On the other hand, S&P 500 futures displayed a modest uptick, while Nasdaq 100 futures experienced a 0.2% rise.
The 10-year Treasury yield observed a decline, settling at 4.11%. However, it’s essential to note that overnight movements in Dow futures may not necessarily translate directly to corresponding actions in the regular stock market session.
Recapping the past week, the stock market rally showcased robust gains, with the Dow Jones Industrial Average climbing 0.65% and the S&P 500 index surging by 1.1%. The Nasdaq composite, although registering a 0.9% increase, concluded the week within the lower half of its weekly range.