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U.S. stock futures on Tuesday pointed to a continuation of the recent rally, with one benchmark trading over a key level.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+0.35%
climbed 132 points, or 0.4%, to 36,587 -
Futures on the S&P 500
ES00,
+0.39%
rose 0.4%, or 19 points, to 4,805 -
Futures on the Nasdaq-100
NQ00,
+0.36%
rose 0.4%, or 62 points, to 16,548
On Monday, the Dow Jones Industrial Average
DJIA,
climbed 247 points, or 0.7%, to 36,585, the S&P 500
SPX,
rose 30 points, or 0.6%, to 4,798, and the Nasdaq Composite
COMP,
surged 1.2%, or 188 points, to 15,832, after Tesla
TSLA,
surged on delivery numbers. Both the Dow and the S&P 500 closed at record highs, and the Nasdaq Composite was just over 1% away.
What’s driving markets
Traders were still in an upbeat mood after a strong start to the trading year.
Global strategists at JPMorgan argue there’s further upside for stocks despite the strong run, citing data indicating the omicron variant is milder and won’t hit mobility as much as prior variants, and the China activity deceleration is behind us. They also say consensus earnings projections for 2022 may be too low.
Without much corporate news set for release, economic data will be in focus. The Institute for Supply Management’s manufacturing report is set for release, as is data on job openings.
The OPEC+ group of crude producers, due to meet Tuesday, are expected to stick with a timetable that would see them raise production by 400,000 barrels a day next month.
“These monthly meetings were adopted early in the pandemic and have been critical in stabilizing oil markets since the collapse in the second quarter of 2020. Cooperation and compliance have been the hallmarks of the organization since then, and the more frequent meetings have allowed the organization to course correct more rapidly than in the past,” said Peter McNally, global lead for industrials, materials and energy at Third Bridge, a research firm.
