The S&P 500 futures are up 15 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 85 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 107 points and are trading 0.3% above fair value.
Pre-open action has the market set to keep climbing after the record close on Friday for the S&P 500. Ongoing strength in tech stocks has supported the positive bias this morning in front of a busy week of earnings news and economic data.
United Airlines (UAL), Verizon (VZ), Procter & Gamble (PG), Netflix (NFLX), Tesla (TSLA), Intel (INTC), and Caterpillar (CAT) are among the notable names reporting earnings this week.
On the economic calendar, the first reading of Q4 GDP will be released on Thursday, followed by the December Personal Income and Spending report on Friday, which features the Fed’s preferred inflation measure in the form of the PCE Price Indexes. Today’s economic data is limited to the December Leading Economic Index at 10:00 ET.
A drop in market rates has also acted as support for equities this morning. The 10-yr note yield is down six basis points to 4.09% and the 2-yr note yield is down three basis points to 4.38%.
In other news, Houthi rebels are seeking more weapons from Iran, according to Politico, but this morning’s price action does not indicate that the market is too worried about a larger issue in the Middle East. WTI crude oil futures are up only 0.3% to $73.48/bbl.
Separately, the People’s Bank of China made no changes to its one-year and five-year loan prime rates, but there was ongoing speculation that some easing will be announced.
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Originally Posted January 22, 2024 – Gains continue after record high close
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