Dow, S&P futures inch higher as banks, energy stocks jump By Reuters
(Reuters) – Futures tracking the Dow and the edged higher on Monday, as investors pivoted towards economically sensitive sectors, with focus turning towards upcoming economic readings and ongoing talks over increased government spending.
Oil majors Exxon Mobil (NYSE:) and Chevron Corp (NYSE:) rose 1.5% and 1.2% in premarket trade, respectively, tracking crude prices, while big lenders including JPMorgan (NYSE:), Citigroup (NYSE:), Morgan Stanley (NYSE:) and Bank of America Corp (NYSE:) gained about 0.8%. [O/R]
Industrials 3M Co and Caterpillar Inc (NYSE:), which tend to benefit the most from an economic rebound, also inched higher.
Following the Federal Reserve’s announcement last week, which indicated that it might begin dismantling its bond-buying program as early as November, and possibly raise interest rates by 2022.
Although monetary tightening can be seen as a negative for stocks, investors see the Fed’s decision as an indication of confidence in America’s economy.
The S&P 500 Value index is down 1.4% so far this month, but still outperforming its growth counterpart.
Wall Street ended a turbulent week with slight increases on Friday, although the benchmark S&P 500 index was on track to break its seven-month winning streak on concerns related to higher potential corporate taxes and China Evergrande’s default.
The ISM manufacturing and durable goods orders will both be important indicators for investors. They also need to monitor bipartisan negotiations over the raising of the $28.4 trillion national debt ceiling.
A Sept. 30 deadline is set by the U.S. Congress to avoid a second partial government shut down in three year, and a Thursday vote on the $1 billion bipartisan infrastructure bill will be held.
At 6:38 AM. ET, were up 88 points, or 0.25%, were up 1.5 points, or 0.03%, and were down 47 points, or 0.31%.
Mega-cap growth names Alphabet (NASDAQ:) Inc, Microsoft Corp (NASDAQ:), Amazon.com Inc (NASDAQ:), Facebook Inc (NASDAQ:) and Apple Inc (NASDAQ:) fell between 0.3% and 0.4%.
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