Guest host Jack Hough breaks down the three most important things investors need to think about with Barron’s brand editor Ben Levisohn, Barron’s reporter Carleton English and Barron’s senior writer Al Root.
US stock futures marked higher on Monday, signaling that the S&P 500 may edge to a record high amid light trading during the summer holiday period.
Futures tied to the S&P 500 are up 0.3%, pointing to sluggish gains after the opening clock. The broad index has risen for three consecutive weeks and Friday ended a breadth of hair below its record close of February, shortly before the pandemic destroyed financial markets.
GET FOX BUSINESS ON THE GO by clicking here
A burst of so-called cyclical stocks in the energy and financial sectors, which are sensitive to the perception of investors from the US economy, has pushed the last leg of the market’s recovery from its March low. . However, the pace of progress has slowed in recent weeks as investors face obstacles to economic recovery, halt negotiations on a new stimulus package in Washington and tensions with China.
“We had the atmosphere that the bottom of the economic downturn was not as bad as the basic outlook of people,” said Lyn Graham-Taylor, strategic strategist at Rabobank. “But there is now also a feeling that the recovery will not become a rapid ‘V’ form, it will slow down.”
TRADERS BRACE FOR HAYWIRE MARKETS RUN PRESIDENTIAL CELEBRATION
Exceptional thin holiday trading has also contributed to listless movements in stocks and bond gains, according to Mr Graham-Taylor. “It will be busy in a few weeks or so,” he added, citing the U.S. presidential election as one factor driving markets in the fall.
Just 3.24 billion shares changed hands on the New York Stock Exchange on Friday, the lowest number since New Year’s Eve last year. So far this month, daily trading volumes on the exchange were more than one-fifth below the average for 2020 as a whole, according to Dow Jones Market Data.
BID MUM OVER TRUMP CRACKDOWN ON SUN STICKS
Federal and currency markets were also quiet. The yield on 10-year Treasury notes rose to 0.695%, from 0.708% Friday. The WSJ Dollar Index, which tracks the dollar against a rate with other currencies, slipped less than 0.1%.
In overseas markets, the Stoxx Europe 600 gauge waffles between profit and loss.
CLICK HERE TO READ MORE ABOUT FOXBUSINESS
Shares in Asia were broadly higher due to the close of trading. China’s Shanghai Composite Index rose 2.3% after the People’s Bank of China injected 700 billion yuan ($ 101 billion) into the banking system through its medium-sized lending facility. The move could pave the way for lower rates for benchmark lending.
However, the Japanese Nikkei 225 fell 0.8% after data showed that the Japanese economy suffered its worst contraction on record in the second quarter. Gross domestic product fell in the three months through June 7.8% compared to the previous quarter, the largest decline since at least 1980.
Oil prices rose, pushing benchmark Brent-crude futures 0.6% higher to $ 45.05 a barrel. Later this week, ministers from the Organization of the Petroleum Exporting Countries and their allies will check on compliance with production struggles.
In the U.S., the number of active oil pellets fell after a 15-year drop after a road in price forced companies to cut production back, oil field company Baker Hughes said Friday.
Write to Joe Wallace at [email protected]
