Stock futures are flat after strong start to May
Stock futures were flat in overnight trading Monday after a strong start to May as investors piled on stocks that would benefit the most from an economic reopening.
Futures contracts on the Dow Jones Industrial Average have changed little. The S&P 500 and Nasdaq 100 futures were also stable.
The futures movement followed strong gains for the Dow during regular trading hours. The 30-stock benchmark gained over 200 points, while the S&P 500 edged up 0.3%. Retail stocks led the market advance with a Gap and Macy rally of over 7%. Dillard’s rose almost 10%, while Urban Outfitters and Kohl’s both gained more than 5%.
“Buying activity has picked up in industries, Boeing and Delta have seen intense commercial activity as investors can take advantage of lower prices and the bank on reopenings,” said Chris Larkin, chief product officer trading and investing at E-Trade Financial.
States continued to ease pandemic restrictions on vaccine deployment. New York Governor Andrew Cuomo has announced that most capacity restrictions will be lifted in New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York later this month. .
Florida Governor Ron DeSantis signed an executive order Monday, that immediately suspends the state’s remaining health restrictions.
The Dow and the S&P 500 have just posted their consecutive months of gains, taking their 2021 gains to over 11% each.
“Many of the factors driving the markets remain in place, including vaccine optimism, economic reopening and accelerating earnings, although inflation and valuation issues remain,” said Mark Hackett, chief executive officer. Nationwide investment research.
Warren Buffett said on Saturday he was seeing “very substantial inflation” among the collection of businesses in Berkshire Hathaway Amid the Economic Recovery.
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