Nasdaq Index, Dow Jones, S&P 500 News: Futures Steady, Lowe’s Beats Forecasts

Stock Futures Flat After Nasdaq Composite Hits All-Time High

Stock futures were mostly unchanged Tuesday following the Nasdaq Composite’s record high. This stability follows a mixed performance on Wall Street, with significant movements in both directions across major indices.

At 10:58 GMT, Dow Futures are trading 39,952.00, up 8.00 or +0.02%. E-mini S&P 500 Index futures are at 5,333.25, up 1.50 or +0.03% and E-mini Nasdaq 100 Index futures are trading 18,751.00, down 12.00 or -0.06%.

Nasdaq Surges, Dow Drops

The Nasdaq Composite reached new intraday and closing highs on Monday, driven by strong gains in Nvidia. The S&P 500 rose nearly 0.1%, maintaining its upward trend. However, the Dow Jones Industrial Average fell almost 200 points. A significant factor in the Dow’s decline was JPMorgan Chase’s 4.5% drop after CEO Jamie Dimon hinted at an earlier-than-expected retirement and indicated that the bank would limit share buybacks at current prices.

Lowe’s Outperforms Expectations

Lowe’s reported better-than-expected earnings and revenue for the first quarter, despite a decrease in sales from do-it-yourself customers. The home improvement retailer posted earnings per share of $3.06, surpassing the anticipated $2.94, and revenue of $21.36 billion, beating forecasts of $21.12 billion. However, net income fell to $1.76 billion from $2.26 billion a year ago. Sales also declined from $22.35 billion in the same period last year, marking the fifth consecutive quarterly drop in year-over-year sales.

Stock Movements in Extended Trading

Several stocks made notable moves in after-hours trading. Palo Alto Networks’ shares fell 8.5% despite exceeding expectations for the fiscal third quarter due to conservative guidance for the current quarter. Peloton shares dipped 2.1% following news of a $275 million refinancing effort. Keysight Technologies saw a 2.7% drop after issuing weaker-than-expected guidance for the current quarter.

Treasury Yields and Federal Reserve Insights

U.S. Treasury yields remained steady as investors evaluated the future of inflation and interest rates. Federal Reserve officials reiterated their cautious stance on inflation. Vice Chair Philip Jefferson and Vice Chair of Supervision Michael Barr expressed uncertainty about the longevity of the recent disinflationary trends. The consumer price index for April showed a monthly increase of 0.3% and an annual rise of 3.4%, aligning with expectations.

Market Forecast

Looking ahead, the market’s direction will hinge on further earnings reports and Federal Reserve signals. If corporate profitability remains resilient, the market may continue its upward trend. However, cautious Fed comments and ongoing inflation concerns could lead to range-bound or even lower market levels in the near term. Traders will closely monitor upcoming speeches from Fed officials and economic data releases for additional guidance.

Technical Analysis

E-mini Dow Jones futures are edging lower on Tuesday. The price action suggests a change in the pattern may be taking place, which is an early sign that short-term momentum is shifting.

A trade through 40213 will signal a resumption of the uptrend with the all-time high at 40358 the next potential target.

On the downside, support is the minor pivot at 39809. This is followed by a minor bottom at 39405 and the 50-day moving average at 39958, which is controlling the intermediate trend.