Results are due from retailers Dollar General and Best Buy this morning
After Dow shares fell by more than 50% over the past year, the likelihood of a market overreaction is quite high. The headlines look quite scary after what was likely a kitchen sink quarter. From a cash flow point of view, however, things are not as dire, and the dividend yield is still attractive.
Wall Street futures were circumspect ahead of Wednesday's opening bell, as investors braced for Nvidia earnings after the close that many feel are all-important. Futures for the Dow Jones, S&P 500 and Nasdaq 100 were all less than 0.1% above where they finished yesterday.
Trump weighs quickly announcing a nominee to replace Lisa Cook on Federal Reserve board
The US indices are giving back a bit of the gains from the Jackson Hole speech on Friday, as we are looking at this as a potential change in the attitude of the markets in general. At this point, we are still bullish, but pullbacks are inevitable.
JPM, GS, JNJ, DIS, and MSFT are five blue-chip stocks that stand out with strong growth drivers and upgraded estimates as the Dow hits record highs.
8:32am: Stocks pull back US stocks are set to open lower on Monday, following a surge on Friday driven by rate cut optimism. Investors last week welcomed signals from Federal Reserve chair Jerome Powell that rate cuts could start as soon as September, with the Dow Jones adding more than 800 points or 1.8%.
Stock futures edged lower after the Dow's record close; markets buoyed by Powell's dovish Jackson Hole remarks and hopes for Fed rate cuts. Investors closely watching upcoming inflation data and Nvidia's earnings, which follow a notable tech sector pullback and Friday's rally.
The US indices that I follow all look somewhat quiet in premarket trading, as we are likely waiting for the next inflation numbers, and of course that speech by Jerome Powell this Friday.
DIA is outperforming as sector rotation, rate cut optimism and gains in heavyweights fuel Dow's record highs.
The Dow closed the session up +10 points, +0.02%, while the Nasdaq shed -314 points on the day, -1.46%.
8:15am: Eye on geopolitics Wall Street looks set for a quiet open on Tuesday, with futures barely budging as investors digest the first big retail earnings of the week and keep one eye on geopolitics. Dow futures inched up about 0.1%, while contracts tied to the S&P 500 hovered just below flat.