The Stock Futures opened flat after a record-setting session on Wall Street, with the S& P 500 already above the 4,000 level.
On Monday, both Dow index and the blue-chip index reached new highs intraday and closing highs and all three major indexes including the Nasdaq jumped more than 1%. As the overnight session continued, contracts on the indexes calmed near these levels.
Traders took Monday as their first chance to react to the Labor Department's blowout March jobs report from Friday, which was reported during a market holiday. Other recent economic data was similarly strong: An index tracking US service sector activity in March, the Institute for Supply Management said Monday. Traders temporarily ignored concerns over rising inflation and interest rates, and the yield on the 10 year Treasury note remained below 1.71%.
Analysts have raised their estimates of the first earnings for companies in an improving economic backdrop, with the earnings season starting in just a couple weeks. According to FactSet, first quarter earnings were revised over the past few weeks by a record margin of 6% as analysts have increased their forecasts for the much stronger economic rebound that has been seen so far.
There have been a lot of false stories out there that interest rates were going to scare the markets, that inflation was going to hurt the markets, the Fed, and the realization is that the economy is doing very well, Larry Adam, Chief Investment Officer at Yahoo Finance told Raymond James. Not only is the economy doing better, but that's actually leading to higher earnings revisions and that's making the market very competitive. And I do n't think we are done yet. I think people are going to continue to see the strength of this economy during the summer, and you are going to see earnings continue to move up during this year significantly.
More positive news around the trajectory of the pandemic has also helped stoke the risk rally. Although lingering concerns about coronavirus variants and persistent outbreaks remain key concerns in states including Florida, other upbeat data around the pace of vaccinations have served as a counterbalance.
The vast majority of US states are on track to open vaccine eligibility to all adults before President Joe Biden's May 1 deadline. According to the Centers for Disease Control and Prevention, an average of more than three million individuals per day are given COVID-19 vaccines in the U.S. According to the TSA throughput data, leisure travel has increased with the number of air passengers jumping above 1.5 million per day. And Southwest announced Monday that it recalled 209 pilots on extended leave to be able to meet an expected increase in summer travel demand.
Stocks changed Tuesday in 6: 02 p.m. ET Stocks the day after record-setting session?
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