U.S. stocks look to start a data-heavy week on a firm note, with the major index futures pointing to a modestly higher open in early trading. Given the lack of any meaningful catalysts, stocks may have to find inspiration elsewhere to keep the upward trajectory intact, while a slew of first-tier economic events lined up for the week could keep sentiment guarded.
Fund manager Louis Navellier said, “If Treasuries can stay under 4.50% and we keep getting decent economic data without any dramatic developments on the geopolitical front – which are impossible to predict ahead of time – most likely, equities are headed to new highs
Futures
Performance (+/-)
Nasdaq 100
+0.18%
S&P 500
+0.11%
Dow
+0.12%
R2K
+0.25%
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.16% to $521.65, while the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.21% to $442.97 according to Benzinga Pro data.
Cues From Last Week
Some positive earnings reports and mostly benign economic data that added weight to Fed rate-cut expectations catalyzed an upward move by the market in the week ended May 10th. Navellier attributed the strength in part to the Treasury refinancing, which went on well, including the $25 billion auction of 30-year Treasury bonds on Thursday.
One of the reasons for the strong auction was the dip in inflation around the world. “China is in the midst of deflation. Meanwhile, the European Central Bank and the Bank of England are going to be cutting in June, so rates are falling around the world while our rates still look very good,” he said.
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