Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Stock futures are equal after the S&P 500 and Dow notch the best August since the 1980s

Stock futures are equal after the S&P 500 and Dow notch the best August since the 1980s



A man walks past a Wall Street charging bull in New York, USA, March 24, 2020.

Wang Ying | Xinhua Agency Getty images

Stock futures sank into overnight trading on Monday after Wall Street recorded its fifth consecutive month of gains.

Dow Jones Industrial Average futures fell about 80 points. S&P 500 and Nasdaq 1

00 futures fell 0.1% each.

Shares of Zoom Video jumped more than 17% during long trading after the next quarter. The company’s video conferencing revenue more than quadrupled in the second fiscal quarter from a year ago.

The S&P 500 and Dow have just finished their best August in more than 30 years. The average value of blue chips increased by 7.6% in August for the fifth consecutive positive month and its largest increase in August since 1984. The S&P 500 also rose for the fifth month in a row, by 7%, reaching its best August since 1986.

The tech Nasdaq jumped 9.6 percent in August, posting its best monthly performance since 2000.

“While the names of growth and momentum continue to be the main drivers of returns, value and cyclicality have begun to participate,” Mark Hackett, head of investment research at Nationwide, said in a note Monday.

In August, the best performers in the S&P 500 open mostly stocks – cruise line operators, airlines and hotels. Royal Caribbean and MGM Resorts gained about 40%, while FedEx and Gap jumped 30% each. Delta Air Lines and Norwegian Cruise Line were also among the leaders of the S&P 500 in August.

Dow’s lineup changed on Monday with the entry of Apple’s 4-for-1 share distribution. Salesforce, Amgen and Honeywell replaced longtime components Exxon Mobil, Pfizer and Raytheon Technologies.

Investors expect a key report on jobs on Friday, which is expected to show that payrolls continue to recover in August. Economists surveyed by Dow Jones estimate that 1.255 million jobs were created in August.

“In terms of jobs in the United States, it’s important to keep in mind that the Fed’s new inflation targeting policy could affect the way the market receives this news,” Christina Hooper, Invesco’s chief global market strategist, said in a note.

“Normally, the report on good jobs would raise concerns that the Fed could tighten up to actively fight inflation and economic overheating. This concern has at least gone away with the Fed’s new policy,” Hooper said.

With a major policy change, the Federal Reserve announced last week that it would allow inflation and employment to exceed its target before considering raising interest rates.

Subscribe to CNBC PRO for exclusive insights and analyzes and live working day programming from around the world.


Source link