U.S. stock futures were less with respect to starting the trade of the new week as investors waited for more earnings and an important speech from Jerome Powell.
After the amazing start to the stock market in the year the investors were also taking some profits.
For 2023 S & P 500 increased more than 7%. The Nasdaq Composite is up for the last 5 weeks in a row.
Dow Jones futures decreased 69 points or 0.2%. S&P 500 futures decreased by 0.3% Nasdaq 100 futures decreased by 0.3%.
“On average, new bull markets launched when stocks were 25% undervalued,” Karl Chalupa said.
“At current valuation, the S & P 500 would need to fall below 3,500 just to reach fair value, a decline to 25% undervaluation would see the S & P 500 fall near to its Covid low of 2,200.
Disney, Chipotle, Dupont, and Pepsico are among the major companies reporting the earnings of the week. Halfway through Q4 S & P 500 has not shown great results. S & P 500 profits decreased by 2.7% in the 4th quarter.
“While interest rates may be near their peak, it would take an actual sharp drop in rates combined with resurgent earnings growth for valuation to improve substantially without a further drop in stock prices,” Chalipa said.
Last week the S & P 500 formed a golden cross, this happens when a moving average crosses through 50 days and above a 200-day moving average. Moving averages are the last 50 to 200 closing prices.
All the major averages finished the Friday session with a decrease. S & P fell 1.04% Nasdaq fell 1.59%. Dow Jones fell only by 0.38%.
However, Dow was also the only one who finished the week lower, by 0.15%. S&P 500 increased 1.62% and Nasdaq increased 3.31%.
The Dow has increased by 2.35%, but it is at 5.3% from its highest. Meanwhile, S & P is at 10.8% and Nasdaq is at 18.02%.
Futures related to Dow Jones are at 33,886 on Sunday evening. S & P 500 at 4134.25. Nasdaq 100 at 12,572.
- Published By Team Nation Press News