S&P 500; US Indexes Fundamental Daily Forecast – Strong Opening Expected

The major U.S. stock indexes are expected to open higher based on the pre-market trade. The bullish price action is being driven by blowout earnings from Dow component Caterpillar.

At 1405 GMT, March E-mini Dow Jones Industrial Average futures are trading 26394, up 124 or +0.40%. The March E-mini S&P 500 Index futures contract is trading 2851.75, up 10.75 or +0.38% and the March E-mini NASDAQ-100 Index is at 6980.50, up 49.25 or +0.71%.

The early bullish catalysts are Caterpillar and 3M. Caterpillar shares rose 3.8 percent in the premarket after the company released its fourth-quarter results. 3M also reported better-than-expected results, helping to lift investor sentiment. Shares of 3M gained 2.5 percent.

Earlier in the session, Weekly Unemployment Claims came in at 233K, slightly below the 239K forecast, but higher than last week’s 216K read. The data indicates tightening labor market conditions.

At 1500 GMT, New Home Sales are expected to come in at 679K, down from 733K. The Conference Board’s Leading Index is expected to come in at 0.5%, up from 0.4%.

Reporting continues today and earnings reports are expected to be the main driver of the price action. However, investors will keep an eye on the activity at the World Economic Forum. Yesterday, Treasury Secretary Steven Mnuchin shook up the markets with negative talk about the U.S. Dollar. However, earlier today, he softened his stance on the Greenback.

Traders are also becoming concerned about over-valuation and potential protectionist policies.