Stock futures fall after hitting record highs
Equity futures fell slightly on Monday night after a record session.
Each of the S&P 500, Dow and Nasdaq indexes hit new highs on Monday as more corporate results beat expectations and defied concerns over supply chain constraints, shortages and cost pressures .
Clorox (CLX) became one of the last big names to get the best estimates from results released Monday after the closing bell, with the cleaning products and housewares company beating third quarter sales and profit estimates and reaffirming its guidance for the year even as the company has said it expects “cost pressures to persist”. Shares of Avis (AVIS) and Simon Property Group (SPG) also surged, with both companies posting better-than-expected quarterly profits after the market closed.
Ahead of this week, the S&P 500’s expected earnings growth rate was 36.6% for the third quarter, which, although down from the second quarter rate, would still mark the third-fastest pace in sales. data going back to 2010, according to FactSet.
“I don’t think what’s happening is very surprising,” when it comes to the significant year-over-year profit growth many companies reported for the third quarter, said Pacer ETF chairman , Sean O’Hara, at Yahoo Finance Live. “I think what we need to see in the future is, is it sustainable, or are some of these outside factors going to be a bigger challenge than we expected?”
“Is the inflation and the input costs that producers have to deal with, is that going to derail things? Is it the lack of workers?” he added. “There are a lot of things that could potentially derail the market, especially as you make this transition from where we are, which is easy to compare from last year, to things more difficult to the future.”
In addition to the solid corporate earnings backdrop, the continued economic recovery and the still accommodating positioning of monetary policy makers also helped support stocks as they progress to new highs. For investors, the Federal Reserve’s latest monetary policy decision on Wednesday will help suggest how long the central bank will maintain its current support levels. Many pundits expect the bank to start pulling back the asset purchases that were its quantitative easing program that had helped prop up the recovery, with new economic data reflecting a US economy closing in on pre-conditions. pandemic.
“We think better days are ahead. Profits continue to grow at a pretty healthy pace. A lot of people are focusing on peak growth rates. That’s probably not the way to look at it,” he said. said Sameer Samana, senior global market strategist at Wells Fargo. Yahoo Finance Live said. “From our perspective, these low interest rates, continued policy stimulus and really strong growth are what set the stage for strong stocks next year.”
6:07 p.m. ET Monday: Stock futures go down
Here’s where the markets were trading at the start of the overnight session:
S&P 500 Futures Contracts (ES = F): -2 points (-0.04%), at 4,603.75
Dow Futures (YM = F): -18 points (-0.05%), to 35,878.00
Nasdaq Futures Contracts (NQ = F): -16.25 points (-0.1%) to 15,878.00
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter