Stock futures are trading higher as investors are feeling comfortable in terms of stimulus and monetary policy support. Janet Yellen, US Treasury Secretary, said that there is no reason for the US economy to suffer, hence it is essential that we pass another stimulus package to strengthen the economic recovery.
The Asian stock market traded mostly higher on the first trading day of the week. The Shanghai index increased 0.94%. The HSI index soared 0.40%, while the ASX index advanced 0.59%. The Nikkei index increased by 1.99%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth gained more strength on Friday. 83% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth is maintaining momentum as the index rallied on Friday. 88% of the shares traded above their 200-day moving average.
Dow Jones Futures Today
The Dow Jones futures are trading higher today. In terms of economic data, investors will be looking at the JOLTS Job Opening number which is due tomorrow. The forecast for this number is 6.45M while the previous reading was at 6.53M.
The Dow Jones futures have erased their losses from Friday, and they are trading higher. The Dow futures have scored a new all-time high today. It seems like that the price is forming a reversal pattern on the daily time frame—a reverse Head and Shoulder pattern. It has already formed a left shoulder and head, and now forming a right shoulder.
If the Dow Jones completes its pattern’s projection, it could easily reach the 33,300 price level. In terms of trend, the price is clearly in a strong upward trend as the Dow Jones is trading above the 50, 100 and 200-day simple moving averages on the daily time frame.
Stock Market Rally
The S&P 500 stock index closed higher on Friday; the index advanced by 0.39%. The material sector led the index higher – 10 out of 11 sectors closed higher.
The Dow index recorded the best week since November last year. The Dow stocks moved the index higher by 0.30%. 21 shares advanced, while 9 shares closed lower.
The NASDAQ composite, a tech-savvy index, closed higher by 0.57% on Friday.
S&P 500 Leaders and Laggards: Activision Blizzard and Cabot Oil
Activision Blizzard stock contributed the biggest gain, soaring 9.64%. Cabot Oil stock was the largest drag; it fell by 6.94%. The S&P 500 stock index is up 3.48% so far this year.
Dow Jones Leaders and Laggards: Nike and United Health
Nike provided the biggest help for the Dow Jones; it advanced by 3.19%, while United Health was the largest decliner, it fell by 1.46%.