Tuesday, May 21, 2024
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Following the S&P 500’s Greatest Winning Streak Since 2021, Stock Futures Have Not Moved Significantly

Following the longest winning runs in nearly two years for the S&P 500 and Nasdaq Composite, U.S. stock futures saw no movement on Wednesday.

S&P 500 and Dow Jones Industrial Average futures saw a little increase. Less than 0.1% was lost by Nasdaq-100 futures.

Before the bell, shares of Rivian surged more than 8% on better-than-expected results and production guidance, while shares of Array Technologies fell 11.8% on disappointing full-year guidance for revenue and profitability. After revealing its intention to raise money through stock and note issues, Spirit AeroSystems, a supplier to Boeing, saw a 14% decline in value.

The S&P 500 finished the day with a 0.3% gain, marking its seventh consecutive positive session. For the seventh day in a row, the Nasdaq Composite increased by 0.9%. Tuesday was the longest run of positive days for both indexes since November 2021. It was a seventh successful day for the 30-stock Dow, which increased by around 0.2%.

Gains have been realised since around 80% of S&P 500 businesses have exceeded earnings estimates this season. However, just 59% of these companies have exceeded revenue expectations due to weakening demand. LSEG claims that this differential was last this large in the fourth quarter of 2015.

Since every major IT company has already released its earnings, we currently have a general idea of where everyone stands. Therefore, there really shouldn’t be too many surprises at this time, according to Mahoney Asset Management CEO Ken Mahoney.

Mahoney continued, “This sustained rally in equities, driven by large-cap technology stocks, along with somewhat restrained central bank policy, may position the market advantageously into 2024.”

Source (CNBC)

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