Yahoo Finance S&P 500; US Indexes Fundamental Daily Forecast – Stocks Called Higher; Investors Await Earnings Season
The major U.S. stock indexes finished mixed on Monday with the S&P 500 Index and NASDAQ Composite Index closing at all-time highs and the Dow Jones Industrial Average closing lower. The markets were generally supported by expectations of U.S. economic growth.
In the cash market, the benchmark S&P 500 Index settled at 2747.71, up 4.56 or +0.17%, the blue chip Dow Jones Industrial Average closed at 25283.00, down 12.87 or -0.05% and the tech-based NASDAQ-100 Index finished at 7157.74, up 21.18 or +0.30%.
The S&P 500 Index was supported by a rise in nine of 11 sectors, led by utilities. The NASDAQ was led higher by strong performances in Facebook, Amazon, Google-parent Alphabet and Netflix. The Dow snapped a four-day winning streak on low volume.
There was no major economic data released on Monday with investors still celebrating the passage of the U.S. tax reform bill in late December while continuing to take advantage of historically low interest rates.
Forecast
Asian markets closed mostly higher on Tuesday, pulling up the U.S. futures indexes. Japan’s Nikkei 225 touched its highest levels in 26 years before closing higher after a long-holiday weekend. In Korea, the Kospi settled lower as investors mulled over the impact of talks between North and South Korea, the first of their kind in more than two years. South Korea announced on Tuesday it would give thought to briefly lifting sanctions against the North if required, in order for the latter to take part in the Olympic Games. In Japan, the Bank of Japan narrowly reduced its bond purchases.
European stocks rallied in reaction to upbeat economic data. In Germany, industrial production and exports were both stronger-than-anticipated in November, showing continued rising growth in Europe’s largest economy.
There’s nothing on the economic front that can derail the rally today, but investors may decide to pare positions ahead of the start of earnings season, Friday’s U.S. consumer inflation report or just to book some profits.
On Friday, several major U.S. banks, including J.P. Morgan and Wells Fargo, will be among the first names reporting. Investors will be looking for signs about how changes in the tax code will impact businesses.
This article was originally posted on FX Empire
