Benzinga - by Shanthi Rexaline, Benzinga Editor.
After Monday’s lackluster performance, stocks are poised to resume their rally, with futures indicating a higher opening for Tuesday’s session. Traders are optimistic about further gains ahead, showing little caution amidst expectations for another stellar corporate reporting season and hopes of the Fed embarking on rate-cutting. Fund manager Louis Navellier remarked, “If history repeats, the stock market should rally right up to the November Presidential election.”
A consumer confidence reading and the durable goods orders report, scheduled for the day, could provide clues about the near-term trajectory of the economy.
Review of Previous Session:
Stocks moved sluggishly on Monday, extending the subdued trend from Friday when the Fed-inspired rally stalled. The major indices opened lower and followed divergent paths. The Dow Industrial Average and the S&P 500 Index remained in negative territory throughout the session, ending lower.
On the other hand, the Nasdaq Composite initially shrugged off a negative start and maintained gains for most of the session before retreating in a late-session sell-off. Small-cap stocks, however, stood out and finished the session firmly in positive territory.
While most S&P sectors closed lower for the day, the energy and utility sectors resisted the downtrend. Material stocks ended the day relatively unchanged.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.27% | 16,384.47 |
| S&P 500 Index | 0.31% | 5,218.19 |
| Dow Industrials | -0.41% | 39,313.64 |
| Russell 2000 | +0.10% | 2,074.16 |
Insights From Analysts:
Wharton Professor Jeremy Siegel sees the continuation of the equity rally. In the latest installment of his weekly WisdomTree commentary, the economist said, “The upward momentum for the market should continue—even if you think the market is over-valued, it is hard to fight this powerful trend over the short run and even medium-term.”
Supporting his deduction, Siegel said the economy is chugging along nicely, with the Fed raising its GDP estimate for the year from 1.4% to 2.1%. He termed the forecast as much more realistic. “Deflationary forces are easing, and conditions are definitely easier on all fronts—including the weekly bank deposits which look to be increasing again,” he said.
Futures Today
Futures Performance On Tuesday ( as of 7 a.m. EDT)
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.59% |
| S&P 500 | +0.43% |
| Dow | +0.26% |
| R2K | +0.62% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.47% to $522.23, and the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.57% to $447.31, according to Benzinga Pro data.
Upcoming Economic Data:
The U.S. Commerce Department is scheduled to release its durables goods orders report for February at 8:30 a.m. EDT. Economists, on average, expect durable goods orders growth of 1% month-over-month. This follows a 6.2% drop in January. Core durable goods orders that exclude transportation orders, may have edged up 0.4%, reversing all of the 0.3% drop in the previous month.
The results of two separate house price surveys are due at 9 a.m. EDT.
The Conference Board will release the results of its consumer confidence survey for March at 10 a.m. EDT. The consensus estimate calls for the index to remain almost steady at 106.9 compared to the February reading of 106.7.
Stocks In Focus:
- Tesla, Inc. (NASDAQ:TSLA) rallied over 3% in premarket trading.
- Trump Media & Technology Group Corp. (NASDAQ:DJT) climbed over 15% in premarket trading ahead of its public debut on the Nasdaq.
- McCormick & Company, Incorporated (NYSE:MKC), GameStop Corp. (NYSE:GME), nCino, Inc. (NASDAQ:NCNO), and Progress Software Corporation (NASDAQ:PRGS) are among the key companies due to report their quarterly results on Tuesday.
Crude oil futures are slipping after Monday’s 1.64% rally, while gold futures rallied toward the $2,200 psychological mark. The 10-year Treasury continues to trade flattish.
Bitcoin (CRYPTO: BTC) traded up nearly 6%, above the $70,000 level. Asian markets closed mixed, while European stocks firmed up in early trading.
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