S&P 500 futures edged higher Monday as investors awaited a batch of key earnings reports and a major policy decision from the Federal Reserve. Dow Jones Industrial Average futures gained 0.06%. S&P 500 futures and Nasdaq 100 futures rose 0.15% and 0.23%, respectively. Investors are coming off a positive streak of gains for the Dow Jones Industrial Average. The blue-chip Dow eked out a 2.51-point gain on Friday, finishing higher for the 10th day in a row and marking its longest rally since 2017. The S&P 500 finished the week up by 0.7%, while the Nasdaq Composite fell 0.6% in the same period. Stocks are riding high heading into a busy week that some market participants worry could try the recent rally. Investors anticipate the Fed will increase rates by a quarter percentage point at the conclusion of its meeting on Wednesday. They will be listening to comments by Chair Jerome Powell to get a sense of the central bank’s position on what happens next as it tries to navigate a soft landing for the economy. Earnings results will also shift into high gear in the week ahead, with Thursday being the most intense day. About 40% of the Dow and 30% of the S&P 500 will give their financial updates during the week, including Alphabet, Microsoft and Meta. Several big pharma companies are getting ready to report and it’s a big week for industrial companies and big oil as well. “This week will offer plenty of opportunity to test the stock market rally that began on October 12 last year and has carried forth from the beginning of this year through last Friday,” Oppenheimer’s John Stoltzfus wrote on Monday. Traders will also watch for the personal consumption expenditures index, the Fed’s preferred inflation gauge, which is due at the end of the week. Asia-Pacific markets were mixed on Monday as investors digested key economic data from across the region. Hong Kong’s Hang Seng index tumbled 2.28%, dragged mainly by real estate stocks and led losses in the region. Mainland Chinese markets were also all lower. The Shanghai Composite was down 0.11%, ending at 3,164.16 and recording a fifth day of losses in six days, while the Shenzhen Component was 0.58% lower at 10,747.79, marking seven straight days of losses. South Korea’s Kospi was up 0.72% to finish at 2,628.53 and record its third straight day of gains, while the Kosdaq saw a 0.5% loss, snapping a nine day winning streak and closing at 929.9. In Japan, the Nikkei 225 gained 1.23% to start the week, closing at 32,700, while the Topix was also 0.83% up to end at 2,281.18. Japan’s business activity expanded for a seventh straight month, with the purchasing managers index from the au Jibun bank unchanged from June’s figure of 52.1. In Australia, the S&P/ASX 200 fell marginally to finish at 7,306.4, after the country saw flash estimates for its composite PMI in July fall into contraction territory for the first time since March. Oil prices were steady on Monday as traders expected more rate hikes from U.S. and European central banks, but tightening supply and hopes for Chinese stimulus underpinned Brent at well above $80 a barrel. Brent crude futures rose 4 cents, to $81.11 a barrel by 0644 GMT. U.S. West Texas Intermediate (WTI) crude was at $77.11 a barrel, also up 4 cents. The benchmarks rose 1.5% and 2.2% respectively last week, their fourth straight of week of gains, as supply is expected to tighten following OPEC+ cuts. Gold prices held steady on Monday as investors awaited a U.S. Federal Reserve meeting this week where the central bank could signal a pause in interest rate hikes from July. Spot gold was little changed at $1,960.01 per ounce by 0536 GMT, while U.S. gold futures fell 0.2% to $1,961.80.
Roodeweg 222, Willemstad, Curaçao