Stock-Index Futures Update
- S&P 500 futures (ES00) rose 14 points, or 0.3%, to 4426
- Dow Jones Industrial Average futures (YM00) added 54 points, or 0.2%, to 34576
- Nasdaq 100 futures (NQ00) climbed 63 points, or 0.4%, to 15049
On Monday, the Dow Jones Industrial Average (DJIA) fell 37 points, or 0.11%, to 34464, the S&P 500 (SPX) increased 30 points, or 0.69%, to 4400, and the Nasdaq Composite (COMP) gained 207 points, or 1.56%, to 13498.
Bond Yields and Stock Sentiment
A pause in the rise of bond yields is helping boost sentiment in stocks. Over the past month, the S&P 500 has declined by 3.7% due to concerns about increasing debt supply and stronger-than-anticipated economic data. However, with 10-year Treasury yields (BX:TMUBMUSD10Y) appearing to have reached a temporary peak, stocks are rebounding from Monday's lows.
Outlook for Tuesday
Current futures data suggests that stocks will continue their rally on Tuesday as bond yields ease by a further 1.5 basis points to 4.231%. This positive outlook is supported by the recent performance of tech stocks, with Nvidia experiencing an 8.5% surge ahead of its Q2 results on Wednesday.
Update: Nvidia Sales Forecast and Earnings Reports
Nvidia is under scrutiny as it approaches the release of its sales forecast for last quarter. Analysts are cautious, warning that if the company falls short of its projected $11 billion in sales, a significant downside correction could ensue. The anticipation is palpable as traders eagerly await this important announcement.
This week, the earnings reports of several prominent companies are due. Before the opening bell on Wall Street, Macy's, Lowe's, and Dick's Sporting Goods will unveil their figures. Later in the day, Toll Brothers and Urban Outfitters will follow suit. These reports will undoubtedly have an impact on the market.
However, all eyes are also on Federal Reserve Chair Jerome Powell, who is scheduled to deliver a speech at the Jackson Hole symposium. Powell's words are expected to be the next acid test for markets. Analysts will pay particular attention to any outlook comments regarding the battle against inflation. The recent consumer prices index indicates that this struggle is not yet over, with inflation levels still lingering above the Fed's 2% target.
Additionally, there are other notable events in the world of Federal Reserve commentary. On Tuesday, Richmond Fed President Tom Barkin is scheduled to speak at 7:30 a.m., followed by remarks from Chicago Fed President Austan Goolsbee and Fed Governor Michelle Bowman at 2:30 p.m.
In terms of economic updates, Tuesday will bring the release of July's existing home sales data and the Richmond Fed's manufacturing index for August. Both of these reports will be made public at 10 a.m. Eastern time.
The coming days are crucial for investors and market participants as they navigate through these important updates and assessments.
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