Stock futures edge higher after records for S&P 500, Nasdaq
By William Watts
Stock-index futures edged higher Tuesday as investors sifted through a slew of high-profile corporate earnings a day after the S&P 500 and Nasdaq Composite scored another round of all-time highs.
The Dow fell 0.1% Monday for its third straight daily decline, while the S&P 500 , up 0.4%, and the Nasdaq Composite , up 0.7%, ended at records.
Investors are wading through the busiest week of earnings season, with Tuesday set to bring reports ahead of the bell from a number of corporate heavyweights.
Revenue growth was likely to remain the "primary factor" when weighing results as investors cope with an environment marked by historically low yields and an economy constrained by deflationary factors, said Boris Schlossberg, managing director at BK Asset Management, in a note.
"A bevy of upside forecasts from management could help propel the indices to new all time highs. However if the general message suggests slowdowns ahead, the markets which are already trading at historically high valuations will be ripe for a correction," he said, in a note.
In a closely followed wrinkle, shares of videogame-retailer GameStop Corp. (GME) rose 15% in premarket trade, on track to add to a 300% gain so far this month attributed to a short squeeze amplified by a surge in options activity by individual investors.
See:As day traders make wild options bets in the stock market, some fear history is repeating itself (https://www.marketwatch.com/story/a-surge-in-options-trading-is-pushing-around-the-stock-market-and-bringing-back-memories-of-the-dot-com-bubble-11611618636?mod=home-page)
Investors continue to track negotiations around President Joe Biden's push for $1.9 trillion in additional COVID-19 aid spending, which faces tough talks in a narrowly divided Senate as an impeachment trial for former President Donald Trump looms.
Biden on Monday appeared to boost his goal for COVID-19 vaccinations in his first 100 days in office, suggesting that the nation could soon be vaccinating 1.5 million people a day (https://www.marketwatch.com/story/biden-more-bullish-on-vaccinations-open-to-goal-of-1-5-million-daily-shots-01611617039), on average.
The Federal Reserve on Tuesday kicks off a two-day policy meeting -- its first of 2021. Policy makers weren't expected to make any changes to policy, but were seen as likely to push back against ideas the central bank would be quick to begin easing up on asset purchases.
See: Think higher inflation is coming? The Fed will believe it when it sees it (https://www.marketwatch.com/story/think-higher-inflation-is-coming-the-fed-will-believe-it-when-it-sees-it-11611600673)
The economic calendar features a pair of November readings on house prices at 9 a.m. Eastern -- the FHFA house price index and the S&P Case-Shiller home price index.
A January reading of a consumer confidence index is due at 10 a.m.
-William Watts; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 26, 2021 07:17 ET (12:17 GMT)
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