US stock futures fell on Monday, falling after huge corporate profits led to a new record high.
What is happening
-
Dow Jones Industrial Average Futures YM00,
-0.25%
It fell 124 points, or 0.3%, to 38,641. -
S&P 500 futures ES00,
-0.23%
It fell 13 points, or 0.3%, to 4,968. -
Nasdaq 100 Futures NQ00,
-0.19%
It fell 38 points, or 0.2%, to 17,695.
The Dow Jones Industrial Average rose 135 points, or 0.35%, to 38,654, the S&P 500 index increased 52 points, or 1.07%, to 4,959, and the Nasdaq Composite Index gained 267 points, or 1.74%, to 15,629. Results from META platforms,
and Amazon.com AMZN,
It helped lift the S&P 500 to its seventh record close of the year.
What drives the markets?
Friday also saw the release of payrolls data, which saw a surprisingly strong 353,000 jobs created in January. That US stocks closed higher anyway, despite bond market weakness sparked by the jobs report, shows the focus the market has placed on earnings, according to Mike Wilson, chief US equity strategist at Morgan Stanley.
“We see good growth continuing to outperform amid strong earnings revisions, particularly with respect to low-quality cyclical stocks and small caps. Right now, stock market internals suggest the notion that a firmer interest rate backdrop is a disproportionate headwind for stocks.” With weak balance sheets and a lack of pricing power – i.e. low quality cyclicals and many small cap areas,” he said.
Federal Reserve Chairman Jerome Powell used his appearance on 60 Minutes to once again hit back at the idea of the central bank cutting interest rates in March.
There is more economic data awaiting us, coming from the ISM Services report. This report last month raised concerns about the economy after an unusually low reading for the employment component.
