Trader on the floor of the New York Stock Exchange, July 15, 2021.
Source: NYSE
U.S. equity futures were slightly higher on Monday after the major averages capped their best week of the year.
Futures tied to the Dow Jones Industrial Average rose 30 points, or 0.1%. S&P 500 futures ticked higher by 0.2% along with Nasdaq-100 futures.
Citigroup shares moved slightly higher before the bell. CNBC reported that the company’s reportedly considering job cuts of at least 10% across several major businesses.
All of the major averages are coming off their best weeks of the year so far, also striking a positive chord to begin November trading. The Dow ended last week up by 5.07% for its biggest weekly advance since October 2022. The S&P advanced 5.85% in that time, and the Nasdaq Composite jumped 6.6%. It was the best week since November 2022 for both indexes. A soft monthly jobs report also drove bond yields lower, giving a boost to equities.
Although the week ahead will be light on economic data and company earnings, seasonal tailwinds could help further the recovery in stocks. November is the best-performing month for the S&P 500, according to the Stock Traders’ Almanac. Turnquist noted it also kicks off the best six-month return period for the market since 1950. The S&P 500 has generated an average return of 7% from November through April since then, he said.
Earnings season is winding down, with 400 S&P 500 companies having already reported their quarterly financial results. Investors this week are still looking forward to updates this week from Walt Disney, Wynn and MGM Resorts, Occidental Petroleum and D.R. Horton.
Traders will also be watching Federal Reserve Chair Jerome Powell, who is scheduled to speak twice in the coming days. Last week the central bank kept rates unchanged for a second straight meeting as bond yields tumbled, and investors are hoping its rate-hiking campaign may be over.
Fed Governor Lisa D. Cook is scheduled to speak on Monday. Several other Fed officials are making public remarks later in the week as well, including New York Federal Reserve President and CEO John Williams, Atlanta Federal Reserve President Raphael Bostic, Richmond Federal Reserve President Thomas Barkin and Dallas Fed President Lorie Logan.