The Santa Claus rally period is poised to continue on a positive note, with index futures pointing to a modestly higher opening on Tuesday. The market was closed on Monday for the Christmas holiday. Extended slide in bond yields, M&A news flow, and positive expectations concerning monetary policy could keep the momentum going for the market. A duo of house price data due for the day will unlikely create much ripples in the market.
Cues From Past Week’s Trading:
Stocks ended higher for an eighth straight week as economic data reinforced expectations for Fed rate cuts in the new year. Corporate tidings were mixed, with Micron Technology, Inc. (NASDAQ:MU) reporting above-consensus earnings and guiding strongly, while Nike, Inc. (NYSE:NKE) was disappointed with its quarterly report.
All three major averages are trading just shy of their two-year highs.
US Index Performance In Week Ended Dec. 22
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +1.21% | 14,992.97 |
| S&P 500 Index | +0.75% | 4,754.63 |
| Dow Industrials | +0.22% | 37,385.97 |
| Russell 2000 | +2.46% | 2,033.96 |
Analyst Color:
”The soft landing narrative is fully in charge,” said fund manager Louis Navellier. The economy remains strong while inflation keeps trending down, and the market breadth continues to improve, with the Russell leading and the Magnificent 7 no longer steering the boat, he said.
”It remains likely that we will end the year at highs,” the fund manager said. ”While valuations seem rich, we are looking at not only an election year in the US but in 80 countries around the world in ’24, where the incumbents will be pulling strings to boost their economies,’ he added.
Navellier said that AI cost savings potential will likely be seen as a very real technology that will start soon and ramp up for years.
Futures Today
Futures Performance On Tuesday
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.24% |
| S&P 500 | +0.19% |
| Dow Industrials | +0.16% |
| R2K | +0.36% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.15% to $474.38, and the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.25% to $409.40, according to Benzinga Pro data.
Upcoming Economic Data:
Theeconomic calendarof the holiday-shortened week is…
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