Trading in US index futures points to a positive start for Wall Street stocks on Monday. With not much moving around, traders can turn to a Fed speech, possible advance announcements and energy prices for trading cues.
What happened: US equities ended the week ended January 6th on a positive note. On Friday, key averages rose sharply on the back of a monthly jobs report that showed job gains beat expectations but a slowdown in average hourly wages, signaling cooling in inflationary pressures. Another report released on Friday showed that the service sector contracted in December.
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Bad economic news is perceived by the market as good news as it offers scope for the Fed to tape.
| index | Performance (+/-) | value | |
|---|---|---|---|
| Nasdaq Composite | +0.98% | 10,569.24 | |
| S&P 500 Index | +1.45% | 3,895.08 | |
| Dow Industrials | +1.46% | 33,630.61 |
The market’s focus now shifts to the December CPI report, due Thursday, and the forthcoming fourth-quarter earnings season. Earnings growth for S&P 500 companies is on track to fall 4.1% year over year — the first decline since the fourth quarter of 2020, according to data provider FactSet in its latest weekly Earnings Insight report.
With fears of an imminent recession, traders will be more excited than the actual results for forecasts for the coming quarter and 2023.
Here’s an inside look at index futures trading:
| index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 futures | +0.42% | |
| S&P 500 futures | +0.36% | |
| Dow futures | +0.24% | |
| R2K futures | +0.60% |
In premarket trading on Monday the SPDR S&P 500 ETF Trust SPY rose 0.37% to $389.50 and the Invesco QQQ Trust QQQ rose 0.45% to $270.0 Benzinga Pro data.
On the economic front, the…
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