On Monday, U.S. stock index futures were mixed in trading after Dow Jones Industrial Average hit record highs on Friday.
Futures are tied to the Dow that slid 80 points while S&P futures traded below the flatline. On the other hand, Nasdaq 100 futures trading in mildly positive territory.
Stocks are coming off after gaining as earnings topped estimates and robust economic data lifted the major averages. Last week, the S&P and Dow grew 1.38% and 1.18% after their fourth straight week of gains. Nasdaq Composite showed its third positive week in a row.
Last week, the central banks reported quarterly results that affected earnings season. Now, companies are planning to provide their updates this week. Ten Dow components will make a report with other 72 companies.
United Airlines, Coca-Cola, and IBM are among these companies that will report earnings on Monday.
Despite these record levels of stock trading, on Friday, UBS lifted its forecast. Now, the company envisions the S&P 500 ending this year at 4,400. It is 5% above where the benchmark index closed last Friday.
Consequences of the vaccination
The company wrote in a note to clients that while investing may be daunting for some people, they believe there are more improvements ahead. They added that two rounds of stimulus in the quarter and the ongoing vaccination seem positive. Business sentiment readings, retail sales, and the latest jobs data point to a strong recovery.
Over the last month, the Russell 1000 Growth index has risen 10% compared to the Value index’s 4% rise. There was a jump in yields in growth-oriented areas of the market and technology.
Over the last few months, the values of stocks are outperforming. However, the Bank of America thinks there’s more upside ahead. On Friday, analysts in the company recommended sticking with value. They believe that it still trades.
On the coronavirus, Dr. Anthony Fauci, White House chief medical advisor, said he expects the U.S. to resume the Johnson & Johnson vaccine administration. Last week, the Food and Drug Administration asked states to stop using the single-dose vaccine temporarily. It was after six women showed a rare blood-clotting disorder.
During an interview on Sunday, Fauci said that he estimates that they will continue to use it in some form. He added that they would not stop vaccination as there is no warning, risk assessment, or restriction.
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