Major US index futures pointed to a lower open on Tuesday ahead of some key tech earnings reports. Traders may prefer to stand on the sidelines or take a profit from the tables following the recent surge in stocks.
On Monday, shares rose on hopes that ongoing earnings momentum will help stave off an economic setback.
Most sectors, with the exception of materials and real estate stocks, performed positively. Defensive consumer staples and healthcare stocks posted notable strength, reflecting retailer caution. Monday’s rally took the S&P 500 Index to its highest level in over a month and the Nasdaq Composite Index failed to surpass levels recorded in early October.
| index | Performance (+/-) | value | |
|---|---|---|---|
| Nasdaq Composite | +0.86% | 10,952.61 | |
| S&P 500 Index | +1.19% | 3,797.34 | |
| Dow Industrials | +1.34% | 31,499.62 |
The four-year presidential cycle typically sees the best performance for the S&P 500 index in the third year after the midterms, John Lynch, Comerica’s chief investment officer, said in a note.
“The two most likely midterm election results point to a combination of partisan control that has historically propelled the S&P 500 up at an average rate of 13.0%,” the analyst said.
Lynch said he maintains the belief that the best strategy is to maintain long-term investment plans.
Here’s an inside look at index futures trading:
| index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 futures | -0.15% | |
| S&P 500 futures | -0.35% | |
| Dow futures | -0.40% | |
| R2K futures | -0.47% |
In premarket trading on Monday, the SPDR S&P 500 ETF TrustSPY slipped 0.35% to $377.56 and the Invesco QQQ TrustQQQ fell 0.15% to $278.05 Benzinga Pro data.
On the economic front, the S&P Case-Shiller home price index for August is due at 9 am EDT.
At 10 a.m. EDT, the Richmond Federal…
