Benzinga - The market mood has returned to being tentative after Monday’s mixed close, as traders stay focused on the developments around the banking crisis that is playing out and turn their attention to some key economic data points scheduled for the week.
Cues From Monday’s Trading:
Stocks meandered to a mixed close on Monday, as optimism over the alleviation of the banking crisis offset to some extent the negative sentiment seen in the tech space. A rising rate environment is considered to be negative for growth stocks belonging to the sector.
The major averages started the session higher but the buying interest waned over the course of the morning session. The tech-heavy Nasdaq broke below the unchanged line in late morning trading and languished mostly in the red thereafter.
The S&P 500 Index briefly dipped below the flat line in early afternoon trading before recovering. The broader gauge closed higher for the session but was well off its intraday high. The 30-stock Dow Industrials was the outperformer of the day, thanks to the strength seen in financial services and oil stocks.
| Nasdaq Composite | -0.47% | 11,768.84 | |
| S&P 500 Index | +0.16% | 3,977.53 | |
| Dow Industrials | +0.60% | 32,432.08 |
“With all of the worrisome headlines that markets have had to navigate these past couple of weeks, it's remarkable that indexes have eked out gains and remain at odds with the message from the Treasury market, particularly the yield curve inversions,” said LPL Financial Chief Global Strategist Quincy Crosby.
“Markets tend to ‘get the news first,’ and it could very well be that the equity market is actually in agreement with the Treasury market and the futures market, that the Fed is nearly finished,” he added.
The analyst flagged Friday’s personal price consumption expenditure data as an important number, and said a cooler inflation print could give the equity markets a cause for celebration.
Futures Today
| Nasdaq 100 Futures | -0.25% | |
| S&P 500 Futures | -0.16% | |
| Dow Futures | -0.07% | |
| R2K Futures | +0.39% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust(NYSE: SPY) fell 0.19% to $395.74 and the Invesco QQQ Trust(NASDAQ: QQQ) moved down 0.30% to $307.83, according to Benzinga Pro data.
Upcoming Economic Data:
The Commerce Department is scheduled to release its advance goods trade balance data for February at 8:30 a.m. EDT. Economists, on average, expect the deficit to remain unchanged at $91.09 billion.
A couple of house price reports are due at 9 a.m. EDT. The Federal House Financial Agency’s house prices report for January is expected to show a 0.2% month-over-month drop, steeper than the 0.1% fall in December.
The seasonally-adjusted S&P/Case-Shiller’s 20-city composite house price index is expected to show a 0.5% month-over-month fall in January, the same as in the previous month. On an annual basis, the unadjusted index is expected to show a 2.5% increase compared to 4.6% growth in December.
The Conference Board is due to release its consumer confidence index for March at 10 am. EDT. The headline consumer confidence index may have declined from 102.9 in February to 101 in March.
Fed Governor Michael Barr is due to testify before the Senate regarding the banking crisis at 10 a.m. EDT.
The results of the Richmond Fed’s manufacturing activity and the Dallas Fed’s service sector reading, both for March, are expected at 10 a.m. EDT and 10:30 a.m. EDT, respectively.
The Treasury is set to auction five-year notes at 1 p.m. EDT.
See also: How To Trade Futures
Stocks In Focus:
Shares of apparel manufacturer PVH, Inc. (NYSE: PVH) climbed over 11% in premarket trading in reaction to its quarterly results reported after the market close on Monday.
Lyft, Inc. (NASDAQ: LYFT) rose over 5% after the rail-hailing company announced a new CEO, potentially paving way for a sale.
Occidental Petroleum Corp. (NYSE: OXY) moved up over 2.5% after Warren Buffett’s Berkshire Hathaway, Inc. (NYSE: BRK-A) (NYSE: BRK-B) bought more shares in the company.
Walgreens Boot Alliance, Inc. (NASDAQ: WBA), Micron Technology, Inc. (NASDAQ: MU), lululemon Athletica, Inc. (NASDAQ: LULU) and Progressive Software Corp. (NASDAQ: PRGS) are among the important companies due to announce their quarterly results on Tuesday.
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures, which rose about 4.5% to $72.81 a barrel on Monday, added an incremental 0.76% to $73.36 a barrel in early European trading.
Bond yields continued to push higher, with the benchmark 10-year Treasury note now yielding 3.554%, up 0.026% points.
Most Asian markets advanced on Tuesday, encouraged by the resilience shown by Wall Street overnight. The Chinese, Taiwanese and Indian markets bucked the uptrend. European stocks opened higher but trimmed their gains later.
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