Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Nasdaq, S&P 500 Futures Slip Ahead Of AI Bellwether Nvidia's Earnings: Analyst Says Stocks Do Particularly Well In December Of Pre-Election Year

Published 21/11/2023, 12:11
© Reuters Nasdaq, S&P 500 Futures Slip Ahead Of AI Bellwether Nvidia's Earnings: Analyst Says Stocks Do Particularly Well In December Of Pre-Election Year
US500
-
US2000
-
SPY
-
QQQ
-
NVDA
-
CL
-
IXIC
-
US10YT=X
-

Benzinga - by Shanthi Rexaline, Benzinga Editor.

Monday’s strong rally might push traders to the defensive, especially ahead of AI bellwether Nvidia Corp.’s (NASDAQ:NVDA) quarterly results due after the market close. Stock futures point to a modestly lower open on Tuesday. Analysts have begun cautioning of a pause after the month-to-date gains, but the unanimous opinion is that the seasonal rally will lift the market going into the year-end.

Traders will likely keep a close eye on the minutes of the December Fed meeting and the bond yields.

Cues From Tuesday's Trading:

U.S. stocks settled solidly higher on Monday, with technology stocks leading from the front. Traders shed away some of their apprehensions that were evident in the second half of the past week as they begin to factor in a pivot by the Federal Reserve and a soft-landing scenario. Oil’s rally perked up, buying interest in energy stocks.

The averages opened mixed, and after a short bout of volatility in early trading, they advanced steadily through the session to end firmer,

The Nasdaq Composite and the S&P 500 indices were higher for a fifth straight session, with indices ending at their highest levels in over 3-1/2 months. The 30-stock Dow Industrials ended at its highest since August 14.

US Index Performance On Tuesday

Index Performance (+/-) Value
Nasdaq Composite +1.13% 14,284.53
S&P 500 Index +0.74% 4,547.38
Dow Industrials +0.58% 35,151.04
Russell 2000 +0.52% 1,807.08

Analyst Color:

The run-up seen in the recent uptrend does not deter an analyst and raises the specter of more upside for the remainder of the year. Carson Group’s Ryan Detrick said with the historic run seen in the past 16 trading days, some pause could happen at any time.

“But be aware that stocks tend to do quite well in December in a pre-election year, so any weakness likely will be another buying opp,” he said.

Futures Today

Futures Performance On Tuesday

Futures Performance (+/-)
Nasdaq 100 -0.08%
S&P 500 -0.09%
Dow -0.11%
R2K -0.33%

In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) slipped 0.09% to $453.85, and the Invesco QQQ ETF (NASDAQ:QQQ) fell 0.08% to $390.43, according to Benzinga Pro data.

Upcoming Economic Data:

The National Association of Realtors is due to release the existing home sales report for October at 10 a.m. ET. Economists, on average, expect existing home sales to come in at a seasonally adjusted annual rate of 3.9 million units, almost flat with September’s rate of 3.96 million units.

The Treasury will auction 10-year TIPS bonds at 1 p.m. ET.

The Fed is due to release the minutes of the Federal Open Market Committee’s October 31-November 1 rate-setting meeting. At the meeting, the central bank held interest rates at a 22-year high of 5.25%-5.50%. Traders may be keen to sift through the minutes to get any potential clue towards future fed funds rate trajectory.

See also: Best Futures Trading Software

Stocks In Focus:

  • Agilent Technologies, Inc. (NYSE:A) shares climbed over 7% in premarket trading following the release of its quarterly results.
  • Baidu, Inc. (NASDAQ:BIDU) rose over 2% after the Chinese search giant reported its results.
  • Abercrombie & Fitch Co. (NYSE:ANF), Analog Devices, Inc. (NASDAQ:ADI), Best Buy Co., Inc. (NYSE:BBY), Burlington Stores, Inc. (NYSE:BURL), DICK’S Sporting Goods, Inc. (NYSE:DKS), Hibbett, Inc. (NASDAQ:HIBB), Kohl’s Corporation (NYSE:KSS), Lowe’s Companies, Inc. (NYSE:LOW) and Medtronic plc (NYSE:MDT) are among the notable companies due to release their quarterly results ahead of the market open.
  • Those reporting after the market close include Nvidia, Autodesk, Inc. (NASDAQ:ADSK), Guess?, Inc. (NYSE:GES), HP Inc. (NYSE:HPQ), Jack in the Box Inc. (NASDAQ:JACK), Nordstrom, Inc. (NYSE:JWN) and Urban Outfitters, Inc. (NASDAQ:URBN).
Commodities, Bonds, Other Global Equity Markets:

Crude oil futures fell 0.58% to $77.38 in the early European session on Tuesday following Monday's 2.5% jump.

On Tuesday, the benchmark 10-year Treasury note fell 0.016 percentage points to 4.406%.

The Cryptocurrency space has paused after Monday’s gains, and Bitcoin (CRYPTO: BTC) traded firmly above the $37,000 level despite its modest weakness.

The U.S. dollar is weaker in most major currencies ahead of the release of the FOMC minutes.

The major Asian stock market had a mixed session, with the Japanese, Hong Kong, Chinese, New Zealand, and Indonesian markets pulling back. On the other hand, the Taiwanese and South Korean markets advanced notably, and the Australian, Malaysian, and Indian markets posted moderate gains.

European stocks traded mixed by late morning on Tuesday.

Photo by WHYFRAME on Shutterstock

Related Link: Nvidia, Microsoft Reach All-Time Highs, Push Nasdaq 100 Near 2021 Peak – Caution Indicator Flashes

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.