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Nasdaq Index, Dow Jones, S&P 500 News: Steady on Light Volume Ahead of Retail Sales

By:
James Hyerczyk
Updated: Jun 18, 2024, 14:22 GMT+00:00

Key Points:

  • S&P 500 futures trade flat as investors await May retail sales data. Insights into consumer health could influence market direction.
  • Nvidia's surge leads to significant rebalancing in a major tech ETF. Nvidia's weight will increase while Apple's will decrease.
  • Merck receives FDA approval for its new pneumococcal vaccine, Capvaxive. The vaccine targets adults and enhances Merck's competitive position against Pfizer.
Nasdaq Index, Dow Jones, S&P 500 News

In this article:

S&P 500 Futures Flat Ahead of Key Retail Data

S&P 500 futures are trading flat Tuesday morning after a strong performance on Wall Street. Investors are preparing for May retail sales data, which will provide insights into consumer health and influence market direction.

At 11:32 GMT, Dow futures are trading 39194.00, down 38.00 or -0.10%. S&P 500 Index futures are at 5544.75, down 1.50 or -0.03% and Nasdaq-100 Index futures are trading 20217.75, up 25.00 or +0.12%.

Positive Momentum on Wall Street

The S&P 500 rose nearly 0.8% on Monday, while the Nasdaq Composite gained almost 1%, both reaching all-time highs. The Dow advanced 0.5%, ending four days of losses. Strong performances by tech stocks, including Broadcom and Apple, contributed to these gains. Notably, Nvidia touched an all-time intraday record but ended the day slightly lower. Despite this, Nvidia shares have surged nearly 165% this year.

Technology Sector ETF Rebalancing

Nvidia’s rally will force a major technology ETF to adjust its holdings, significantly increasing Nvidia’s weight while reducing Apple’s. The Technology Select Sector SPDR Fund (XLK) will rebalance based on adjusted market cap values, with Microsoft and Nvidia expected to each hold around 21% weight, while Apple’s weight will drop to approximately 4.5%. This rebalancing reflects the shifting market dynamics within the tech sector.

Corporate Updates: Fisker, Lennar, La-Z-Boy, Merck

Electric vehicle maker Fisker filed for bankruptcy after heavy spending on its Ocean SUVs. Homebuilder Lennar reported better-than-expected earnings but saw its stock fall 2.5%. In contrast, La-Z-Boy jumped over 10% after surpassing earnings expectations. Merck received FDA approval for its new pneumococcal vaccine, Capvaxive, designed to protect adults from serious illnesses. The vaccine is expected to provide significant market growth and enhance Merck’s competitive position against Pfizer’s Prevnar 20.

Market Forecast: Cautious Optimism

Looking ahead, investors will focus on May retail sales data for indications of consumer health. Economists predict a 0.2% growth from April. Additional economic reports on industrial production and business inventories will be released. Several Federal Reserve officials will speak, potentially impacting market sentiment. Investors remain cautiously optimistic, seeing no immediate threats to the market’s upward trend but staying alert for any changes in economic conditions.

Daily E-mini S&P 500 Index

E-mini S&P 500 Index futures are drifting lower during the pre-market session on relatively low volume. Wednesday is a market holiday so this trend in volume could continue throughout the day. This tends to happen when a major holiday occurs in the middle of the week.

Nonetheless, the benchmark is still in a position to post a new all-time high. Even if there is a short-term pullback, the trend is not likely to be threatened with the 50-day moving average providing support at 5310.24, followed by the swing bottom at 5205.50.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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