U.S. Stock Index Futures and a Historic week for Stocks
U.S. stock index futures dropped on April 19, after the S&P 500 as well as Dow Jones Industrial Average closed at record highs on April 16. Futures contracts tied to the Dow fell 75 points, S&P 500 futures declined 0.2%, and Nasdaq-100 futures were flat. Stocks are coming off a week of gains as earnings surpassed estimates and strong economic data helped to boost the major averages.
The S&P and Dow gained 1.38% and 1.18% last week respectively for their fourth straight weeks of gains. Meanwhile, the Nasdaq Composite posted its third positive week in a row. In spite of the fact that stocks reached historic results, UBS made the decision to lift its forecast for the year. It now expects the S&P 500 to end at 4,400, which is roughly 5% above where the benchmark index closed on April 16.
Bank shares were lower in early trading on April 19, as investors continued to take profits following big earnings from the group last week. Wells Fargo, Bank of America as well as CitiGroup were all lower in premarket trading.
Shares of Coca-Cola rose more than 1% in premarket trading after the company reported better-than-expected earnings and revenue. The consumer giant also said demand in March returned to pre-pandemic levels.
Stocks and coronavirus pandemic
The Russell 1000 Growth index outperformed over the last month, adding 10% compared to the Russell 1000 value index’s 4% rise. It clawed back some of the recent losses after a jump in yields triggered a rotation out of technology and growth-oriented areas of the market.
Over the last three months, value stocks are still outperforming. According to Bank of America, there is more upside for the group.
When discussing stocks, it is all but impossible not to mention the coronavirus pandemic, as it is an important issue. White House chief medical advisor Dr. Anthony Fauci expects the U.S. will start again administration of the Johnson & Johnson vaccine. Only roughly 7.8 million doses of the 202 million shots administered in the U.S. have been from J&J.
Several days ago, the Food and Drug Administration asked states last week to temporarily halt using the single-dose vaccine. Anthony Fauci anticipates a decision regarding the J&J vaccine as soon as Friday. The U.S. Centers for Disease Control and Prevention’s vaccine advisory panel will discuss the fate of J&& vaccine on April 23.
