Notwithstanding some weakness in the mega-cap stocks, the broader stock market had a good day on Monday. There is hope for a repeat performance today and that hope has helped put a bid in the equity futures market this morning.
It is not a strong bid, but it is a bid that has kept the indices on track for a modestly higher open.
Currently, the S&P 500 futures are up 11 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 35 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 116 points and are trading 0.4% above fair value.
There is some rebound action in the mega-cap stocks that is helping things along. Amazon.com (AMZN), which started its two-day Prime Day sale today, is among the stocks trading higher in pre-market action.
A dip in market rates, which has included the 10-yr note yield moving back below 4.00%, has been looked at as another support factor along with brokerage upgrades of Dow components JPMorgan Chase and 3M.
In general, there isn’t much market-moving news. Participants remain fixed on the release of the June Consumer Price Index on Wednesday, so it’s really more about price action at this juncture.
Yesterday’s price action was encouraging since it featured the outperformance of non-tech cyclical stocks and gains for the major indices despite losses among the mega-cap stocks, suggesting that there was a rotation of money within the stock market as opposed to a rotation away from the stock market. That is what one typically sees in a bull market.
For some context, an S&P 500 Equal-Weight ETF gained 0.9% on Monday, outperforming the market-cap weighted S&P 500, which gained 0.2%.
—
Originally Posted July 11, 2023 – Price action for broader market improves
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Briefing.com and is being posted with its permission. The views expressed in this material are solely those of the author and/or Briefing.com and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: ETFs
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.