Benzinga - by Shanthi Rexaline, Benzinga Editor.
U.S. stocks look to start a data-heavy week on a firm note, with the major index futures pointing to a modestly higher open in early trading. Given the lack of any meaningful catalysts, stocks may have to find inspiration elsewhere to keep the upward trajectory intact, while a slew of first-tier economic events lined up for the week could keep sentiment guarded.
Fund manager Louis Navellier said, “If Treasuries can stay under 4.50% and we keep getting decent economic data without any dramatic developments on the geopolitical front – which are impossible to predict ahead of time – most likely, equities are headed to new highs
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.18% |
| S&P 500 | +0.11% |
| Dow | +0.12% |
| R2K | +0.25% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.16% to $521.65, while the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.21% to $442.97 according to Benzinga Pro data.
Cues From Last Week
Some positive earnings reports and mostly benign economic data that added weight to Fed rate-cut expectations catalyzed an upward move by the market in the week ended May 10th. Navellier attributed the strength in part to the Treasury refinancing, which went on well, including the $25 billion auction of 30-year Treasury bonds on Thursday.
One of the reasons for the strong auction was the dip in inflation around the world. “China is in the midst of deflation. Meanwhile, the European Central Bank and the Bank of England are going to be cutting in June, so rates are falling around the world while our rates still look very good,” he said.
The Dow Industrials rose for an eighth straight session, with the 30-stock blue-chip average and the S&P 500 Index closing at the highest level since April. The Dow had its best week since December, according to CNBC.
While the Dow rose for four consecutive weeks, the S&P 500 and the Nasdaq Composite are on a three-week winning streak.
| Index | Weekly Performance (+/-) |
Value |
| Nasdaq Composite | +1.14% | 16,340.87 |
| S&P 500 Index | +1.85% | 5,222.68 |
| Dow Industrials | +2.17% | 39,512.84 |
| Russell 2000 | +1.18% | 2,059.78 |
Insights From Analysts:
While some call for a potential market correction, the market is telling a different take, said Carson Group’s Ryan Detrick. He noted for three days on the trot, more than 74% of NYSE-listed stocks advanced, he said, adding that this was a “clear sign of buying pressure.”
Going back to 2000, when this occurred, the S&P 500 Index was higher a year later every time and the average gain was 23%, he said.
Same old