Stock-index futures drifted higher Tuesday as investors continued to dig into corporate earnings while awaiting President Donald Trump’s State of the Union address in the evening.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average YMH9, +0.32% rose 80 points, or 0.3%, to 25,268, while S&P 500 futures ESH9, +0.18% rose 5.05 points, or 0.2%, to 2,726.50. Nasdaq-100 NQH9, +0.23% were 19 points higher at 6,956.50, up 0.3%.
Stocks ended higher Monday, led by tech shares. The Dow Jones Industrial Average DJIA, +0.70% ended with gain of 175.48 points, or 0.7%, at 25,239.37, while the S&P 500 SPX, +0.68% advanced 18.34 points, or 0.7%, to 2,724.84. The Nasdaq Composite COMP, +1.15% rose 83.67 points, or 1.2%, to end at 7,347.54, leaving the tech-heavy index less than 1.4% away from exiting bear-market territory. Monday’s gains marked a four-day winning streak for the S&P 500 and the Nasdaq.
What’s driving the market?
Stocks began the week on a positive note, with investors tying strength to earnings that were perceived as upbeat, with tech shares leading the way higher. Earnings continue to roll in this week.
Trump is set to deliver his State of the Union address Tuesday night. Analysts said investors could prove more sensitive than usual to headlines surrounding the speech given market jitters over U.S.-China trade talks and the prospects of another government shutdown if the White House and congressional Democrats are unable to agree to a deal on funding for a southern border wall before the current stopgap funding measure runs out later this month.
Federal Reserve Chairman Jerome Powell dined Monday night with Trump and Treasury Secretary Steven Mnuchin, the central bank said in a statement. Powell has been criticized frequently by Trump as the Fed lifted rates four times in 2018. The Fed said Powell’s comments at the dinner were consistent with his remarks at his news conference last week and didn’t discuss expectations for monetary policy, “except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.”
What shares are in focus?
Shares of Google parent Alphabet Inc. GOOG, +1.99% GOOGL, +2.04% will be in focus after reporting stronger-than-expected earnings after Monday’s close. Shares were down more than 2% in premarket action, however, thanks to displeasure over a sizable jump in spending.
What are analysts saying?
“The speech is going to be closely monitored by investors, keen to get an update on trade talks with China and border security, or more specifically the wall, which led to the longest ever government shutdown last month and could trigger another in just over a week,” said Craig Erlam, senior market analyst at Oanda, in a note.
“There have been plenty of reports that Trump is considering using emergency powers to deliver on his promise of border wall funding and this could be the platform for it, or at least a strong hint of an intention to do so,” Erlam said.
This post was originally posted at http://www.marketwatch.com/news/story.asp?guid=%7B62873206-2938-11E9-8A77-01F9ED67D04E%7D&siteid=rss&rss=1. WGEH does not own this content and is not responsible for it.