By
Bhushan Akolkar
April 17th, 2024
Stock futures are mixed after the Dow Jones Industrial Average closed its best month in more than a year.
The Dow Jones Industrial Average surged to a new high for the year on Thursday. This marked a stellar month-end performance amidst signs of reduced inflation and robust earnings reports. Climbing by 520 points, or 1.47%, the Dow closed at 35,950.89, surpassing its previous peak set in August. Similarly, the S&P 500 added 0.4% to hit 4,567.80, while the Nasdaq Composite dipped slightly by 0.2% to 14,226.22, impacted by profit-taking in leading Big Tech stocks that spearheaded the November market resurgence.
November’s closure saw the Dow increasing significantly, breaking a three-month losing streak. These gains represent the best monthly performances since July 2022, bringing the indexes within 1% of their 2023 highs.
Dow Up as Market Records Slight Increases
Chris Zaccarelli, Chief Investment Officer at Independent Advisor Alliance, attributed November’s success to a positive economic outlook, resilient consumer behavior, and the Federal Reserve’s decision to leave rates unchanged. He indicated optimism for the market’s upward trend if these conditions persist until the end of the year.
Cloud software giant Salesforce led the Dow’s ascent on Thursday, soaring by 9.4% on the back of stellar earnings and revenue for the fiscal third quarter. Healthcare heavyweights like UnitedHealth Group Inc (NYSE: UNH), Johnson & Johnson (NYSE: JNJ), Merck & Co Inc (NYSE: MRK), and Amgen Inc (NASDAQ: AMGN) also contributed to the Dow’s upward trajectory.
Moreover, inflation data released on Thursday showed a slowdown in the personal consumption expenditures price index, a favored inflation metric by the Federal Reserve. The index rose by 3.5% year-over-year, declining from the previous month’s 3.7% gain. In November, this series of positive inflation indicators led investors to speculate that the Fed might halt rate hikes and even consider rate cuts in 2024.
The 10-year Treasury yield, which surged above 5% last month, subsided to 4.34% in November following easing inflationary pressures, further bolstering investor confidence in equities.
Market Players Await Powell’s Insights as December Begins
As the markets entered December, US stock futures presented a weaker picture on Friday. For instance, the Dow Jones futures contract showed a minimal increase of 40 points (0.1%). Also, the S&P 500 Futures increased, trading 2 points higher (0.1%). However, there was a recorded decline of 7 points (0.1%) in the Nasdaq 100 Futures.
Investors await insights from Federal Reserve Chair Jerome Powell, scheduled to speak today. Market participants eagerly anticipate Powell’s remarks for cues regarding the central bank’s stance on interest rates heading into the new year. Additionally, investors also await data releases, including construction spending for October and November’s ISM Manufacturing data.
Recent interesting details on the corporate front include details from Walt Disney Co (NYSE: DIS) and Tesla. Walt Disney reinstated dividends, while Tesla announced Cybertruck delivery at a recent event.
Tesla revealed several details, including pricing and battery range. Unfortunately, Tesla Inc (NASDAQ: TSLA) stock reacted negatively on Thursday, falling slightly. The first new passenger vehicle since the Model Y launched in 2020, the Cybertruck begins at $60,990, the version with a 250-mile range. There are also others at $79,990 with a 340-mile range and $99,990 with a 320-mile range.