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Stock futures higher as S&P 500 looks to wrap up 7th winning month in a row

Stock futures higher as S&P 500 looks to wrap up 7th winning month in a row

The bull sculpture representing the upward push of the market by artist Reinhard Dachlauer is pictured in front of the stock exchange in Frankfurt, Germany, on December 29, 2020.

Daniel Roland | AFP | Getty Images

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Stock futures rose in early morning trading on Tuesday as the S&P 500 looks to wrap up its seventh straight month of gains at a story excessive.

Futures on the Dow Jones Industrial Average gained 77 points, or 0.2%. Each S&P 500 futures and Nasdaq 100 futures traded higher by about 0.2%. The S&P 500 notched its 53rd story shut of 2021 on Monday.

Tuesday marks the last trading day of August, and major averages are poised to put up stable gains for the length. The S&P 500 is up 3% this month, while the tech-heavy Nasdaq Composite has climbed 4%, on pace to put up its third winning month in a row. The blue-chip Dow is up a more modest 1.3%.

For the S&P 500, this can be its longest winning streak since a 10-month hasten ending in December 2017. Here is also the benchmark’s ninth certain month in the last 10.

“We imagine that the momentum toward reopening and recovery is intact and that there may be extra upside to equities,” wrote Mark Haefele, chief investment officer of global wealth management at UBS, in a present. “The S&P 500 rally is underpinned by tough earnings growth…With the commercial recovery broadening, we inquire of cyclical sectors, including energy and financials, to take the lead.”

Haefele sees the S&P 500 rising another 1.6% from right here to 4,600 by year-finish and then running to 5,000 by the finish of 2022.

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The S&P 500 managed to climb up a wall of fear to story highs with out even a 5% pullback this year. The broad fairness benchmark has rallied more than 20% in 2021 and has more than doubled since its pandemic low in March 2020.

Stellar corporate earnings have equipped valuation support and the basis for stock prices to march higher. With the 2d-quarter reporting season winding down, the S&P 500 is on track to put up an earnings growth rate of 95.4%, which continuously is the largest increase since the fourth quarter of 2009.

“We imagine we’re aloof in the early innings of the cycle and that stable financial and earnings growth and relatively low rates thru 2022 may aloof support higher fairness prices and sustain the bull market,” Wells Fargo strategists said in a present.

Zoom shares fell about 10% in premarket trading on Monday after the video-conferencing software company showed slowing income growth in the 2d quarter. The fall in shares came even as Zoom’s earnings beat estimates and the company raised full-year guidance as the pandemic took a turn for the worse.

Investors are awaiting a key jobs document on Friday ahead of the Labor Day weekend. Economists polled by Dow Jones inquire of 750,000 jobs had been created in August and the unemployment rate fell to 5.2%.

On the political front, the Pentagon said the U.S. has finished its evacuation efforts from Kabul’s airport, effectively ending America’s longest war.

Stock futures higher as S&P 500 looks to wrap up 7th winning month in a row