Stock-index futures were mixed Monday, after the Dow Jones Industrial Average and the S&P 500 ended last week at records following a disappointing jobs report that was seen keeping the Federal Reserve from tightening policy.
What are major indexes doing?
Futures on the Dow Jones Industrial Average
rose 124 points, or 0.4%, to 34,810.
S&P 500 futures
edged up 5.55 points, or 0.1%, to 4,230.75.
fell 39.50 points, or 0.3%, to 13,670.25.
On Friday, stocks shook off a much-weaker-than-expected April jobs report Friday, with the Dow
and S&P 500
both ending at records, while the Nasdaq Composite
outpaced its major benchmark peers but still posted a weekly loss.
What’s driving the market?
Analysts said Friday’s disappointing April jobs report, which saw U.S. nonfarm payrolls rise by 266,000 versus a consensus forecast for an increase of 1 million, continued to provide a positive backdrop for equities.
“In our view, the jobs report shows a surprising pause in the labor market recovery, coming at a time when the underlying fundamentals and alternative data are pointed towards acceleration,” wrote analysts at Credit Suisse, in a note.
“Nevertheless, this report should delay any discussion of withdrawing accommodation until a decisive labor market rebound takes place,” they said. “As such, we continue to expect positive equity returns, but at the expense of increased near-term volatility.”
Investors were tracking developments around a cyberattack on a vital pipeline that delivers around 45% of fuel consumed on the East Coast. Georgia-based Colonial Pipeline over the weekend said it closed the pipeline was the target of a ransomware attack.
Tech and other growth-oriented stocks, which are expected to grow earnings faster than their peers, were buoyed Friday as the jobs data sparked a retreat for Treasury yields. Those shares appeared set to resume their recent underperformance, however, as yields pushed to the upside on Monday.
Meanwhile, a strong earnings season was moving into its final stage.
Through Friday, 88% of S&P 500 companies had reported earnings covering the first quarter, according to FactSet. The index is now reporting the highest year-over-year growth in earnings since for the first quarter since 2010, said John Butters, senior earnings analyst at FactSet, in a note.
Analysts also expect double-digit earnings growth for the remaining three quarters of 2021. These above-average growth rates are due to a combination of higher earnings for 2021 and an easier comparison to unusually weak earnings in 2020 due to the negative impact of COVID-19 on numerous industries, Butters said.
Which companies are in focus?
American depositary receipts for BioNTech SE
jumped 9% in premarket action after the German biotechnology group, which co-developed the first COVID-19 vaccine to win regulatory approval with Pfizer Inc.
on Monday reported a surge in revenues.
U.S. Foods Holding Corp.
reported earnings and revenue that topped forecasts and said it wouldn’t provide guidance due to pandemic-related uncertainty. Shares were inactive in premarket trade.
Shares of Energizer Holdings Inc.
rose 4% after the battery maker delivered results that blew past Wall Street forecasts.
Marriott International Inc.
shares were down 1.8% after the hotel operator announced earnings that beat estimates but revenue that fell short.
Shares of Tyson Foods Inc.
were on the rise after the protein manufacturer reported fiscal second-quarter earnings and sales that beat expectations.
What are other markets doing?
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was off 0.1%.
Oil futures were higher, with the U.S. benchmark
up 0. 9% at $65.48 a barrel. Gold futures
edged higher, up 0.5% around $1,841.20 an ounce.
The pan-European Stoxx Europe 600
and London’s FTSE 100
were trading near unchanged. In Asia, Hong Kong’s Hang Seng Index
fell 0.1%, while Japan’s Nikkei 225
rose 0.5% and the Shanghai Composite
Crypto assets were in focus, with parody coin dogecoin
dropping sharply following the airing of a heavily hyped episode of “Saturday Night Live” guest-hosted by Tesla Inc.
CEO Elon Musk. Ether coins that run on the Ethereum blockchain, however, were trading near records above $4,000.