Opening Comment — Tuesday, May 07, 2024
DJIA: 38,852.27, up 176.59
S&P 500: 5,180.74, up 52.95
NASDAQ: 16,349.25, up 192.92
Stocks mixed ahead of latest earnings reports
Stock futures are mixed on Tuesday, ahead of the latest earnings releases and March’s consumer credit. The Dow is rising 0.1%, while the S&P 500 is little changed. The Nasdaq 100 is decreasing 0.2% relative to fair value on the GLOBEX.
U.S. equities were higher on Monday, as investors continued digesting key economic data from last week and speculated about the Federal Reserve’s (Fed’s) future path of monetary policy. The Dow was up 0.5%, while the tech-heavy Nasdaq Composite rose 1.2%. The S&P 500 increased 1.0% with 10 of 11 sectors finishing in positive territory. The Information Technology sector gained the most, rising 1.5%.
On the data front today, March’s consumer credit is projected to record an increase of $15.0 billion versus the prior month’s increase of $14.1 billion.
Across the pond, European stocks are higher in mid-day trading with the eurozone’s retail sales increasing slightly more than projections in March. Germany’s factory orders decreased in March, compared to an anticipated increase.
Overnight in Asia, stocks were mostly higher following the Reserve Bank of Australia’s decision to hold interest rates steady. The final reading for Japan’s April composite and services Purchasing Managers’ Index (PMI) was revised lower from the preliminary reading.
In FOREX trading, the dollar is higher, as investors continue evaluating the possible extent of this year’s interest rate cuts.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.3% lower at $78.22/barrel, following Israel’s attack on Rafah in Gaza amid ongoing ceasefire talks with Hamas, which have yet to yield an agreement.
In the metals complex, gold is 0.4% lower at $2322.10/ounce following a strengthening dollar.