U.S. stock index futures hit record highs on Monday as the so-called "Trump trade", which sent Wall Street to record highs last week, looked set to pick up speed after a brief lull.
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Wall Street’s three main stock indexes closed at record highs on Thursday and Friday as optimism about the economy rose after President Donald Trump vowed to make a major tax announcement in the next few weeks.
The S&P 500 has surged 8.3 percent since Trump’s Nov. 8 election, fueled by expectations he will lower corporate taxes, reduce regulations and increase infrastructure spending. The rally had stalled amid concerns over Trump’s protectionist stance and lack of clarity on policy reforms.
Investors are now closely watching as the businessman-turned-politician lays out the finer details of his agenda to boost economic growth.
Investors were also comforted by the two-day U.S.-Japan summit held over the weekend apparently having ended smoothly without President Donald Trump talking tough on trade, currency and security issues.
Oil prices, which helped the markets break records last week, were down about 0.3 percent, cutting their losses after OPEC data showed a 93 percent compliance on its output cut deal. [O/R]
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Energy stocks could continue to be in focus through the week as a host of small-cap energy companies are due to report results.
Corporate reports in general are likely to remain in focus for the day, given the absence of key economic data and no scheduled appearances by Federal Reserve speakers.
Teva’s U.S.-listed shares rose 4.6 percent to $33.69 in premarket trading after the Israeli drugmaker reported a better-than-expected fourth-quarter profit.
Caterpillar was up 0.8 percent at $97.14 after Evercore ISI raised its rating on the stock, a trader said.
Macy’s rose 2.4 percent after Barron’s said on Sunday that the department store chain operator could see its shares rise by 50 percent in a potential sale.
Futures snapshot at 6:58 a.m. ET:
Dow e-minis were up 43 points, or 0.21 percent, with 18,639 contracts changing hands.
S&P 500 e-minis were up 3 points, or 0.13 percent, with 78,271 contracts traded.
Nasdaq 100 e-minis were up 4 points, or 0.08 percent, on volume of 15,794 contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)
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