Analyst: 'Trying to pick a top' like 'picking up pennies in front of a steamroller'
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U.S. stock-index futures traded slightly lower on Tuesday, with investors finding few reasons to keep pushing shares higher following a session where both the Dow and the S&P 500 ended at records.
If the Dow ends in negative territory on Tuesday, it will end a 10-day streak of gains, as well as nine straight sessions where it ended at a record.
Dow Jones Industrial Average futures edged down 0.1% to 22,032, while S&P 500 futures dipped by 0.2% to 2,473.75. Nasdaq-100 futures shed 0.1% to 5,925.75.
While recent market action has had a modest upside bias, the moves have been slight; by one metric, this is the quietest market since 1965 (http://www.marketwatch.com/story/stock-market-hasnt-been-this-quiet-since-lyndon-b-johnson-was-president-2017-07-12). The S&P 500 hasn't had a session where it moved 0.5%, in either direction, since July 19, an abnormally long time. The CBOE Volatility index recent traded near its all-time lows.
The lack of market movement is a sign that while equities lack the kind of positive catalysts that could deliver solid upside from current levels, investors are also reluctant to retreat from the asset class in a time of improving profits and a strong labor market.
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"Trying to pick a top in U.S. equity markets" has been like "picking up pennies in front of a steamroller," said Michael Hewson, chief market analyst at CMC Markets UK, in a note.
"The positive afterglow of Friday's jobs report continued to buoy sentiment, with volatility on the S&P 500 at its lowest level in decades, as the summer doldrums beds in even further," he added.
Individual movers: Shares in Avis Budget Group Inc.(CAR) fell 8% in premarket action after the car rental company late Monday posted quarterly results that missed Wall Street's expectations (http://www.marketwatch.com/story/avis-shares-down-10-after-company-misses-eps-sales-forecasts-2017-08-07).
Marriott International Inc.(MAR) shed 4% in thin premarket trading. That's after the hotelier posted a quarterly earnings beat, but guided profit for the current quarter (http://www.marketwatch.com/story/marriott-earnings-beat-but-stock-falls-2-2017-08-07) slightly below analysts' forecasts.
CBS Corp.(CBSA) was little changed in light volume after the media giant also reported results late Monday (http://www.marketwatch.com/story/cbs-earnings-boosted-by-twin-peaks-final-four-2017-08-07), with revenue topping expectations.
Ahead of the open, drugstore operator CVS (CVS) posted earnings and revenue that beat estimates (http://www.marketwatch.com/story/cvs-health-shares-rise-after-earnings-and-revenue-beat-estimates-2017-08-08). Shares inched down slightly ahead of the open.
Michael Kors Holdings Ltd.(KORS) soared 11% as profit at the clothing and accessories company's beat views (http://www.marketwatch.com/story/michael-kors-shares-spike-after-earnings-beat-2017-08-08).
Drugmaker Valeant Pharmaceuticals International Inc.(VRX.T) was another big gainer, rising 6% premarket as its quarterly revenue topped forecasts (http://www.marketwatch.com/story/valeant-reports-q2-loss-cuts-2017-revenue-guidance-2017-08-08).
Dairy giant Dean Foods (DF) was 0.5% lower after its earnings disappointed (http://www.marketwatch.com/story/dean-foods-ceo-not-satisfied-with-q2-earnings-that-were-well-below-expectations-2017-08-08), while theme park operator SeaWorld Entertainment Inc.'s (SEAS)revenue missed views (http://www.marketwatch.com/story/seaworld-swings-to-loss-and-revenue-misses-expectations-2017-08-08).
Apparel seller Ralph Lauren Corp.(RL) is also among the companies on the earnings docket ahead of the open.
Economic news: Sentiment among small-business owners jumped in July (http://www.marketwatch.com/story/small-business-sentiment-rises-in-july-after-five-month-rut-nfib-2017-08-08), the National Federation of Independent Business said early Tuesday.
A June report on job openings is due at 10 a.m. Eastern Time. No Federal Reserve officials are slated to give speeches Tuesday.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
Other markets:Oil futures (http://www.marketwatch.com/story/oil-prices-tug-lower-on-doubts-opec-meeting-will-deliver-2017-08-08) traded higher as investors waited for word on whether the Organization of the Petroleum Exporting Countries will back any strong measures to enforce production caps at the cartel's ongoing meeting. Saudi Arabia has made good on its pledge to help rein in a global supply glut, a Reuters report said (http://www.marketwatch.com/story/saudi-arabia-to-cut-crude-oil-allocation-in-september-by-more-than-its-opec-pledge-report-2017-08-08).
European equities (http://www.marketwatch.com/story/european-stocks-edge-lower-on-downbeat-german-chinese-export-data-2017-08-08) tilted down Tuesday, as disappointing trade data from Germany and China pulled down on key sectors. Asian markets closed mostly lower (http://www.marketwatch.com/story/asian-markets-slip-amid-weakening-dollar-2017-08-07).
South Africa's rand was rallying ahead of a no-confidence vote (http://www.marketwatch.com/story/south-africas-rand-is-rallying-ahead-of-a-no-confidence-vote-on-president-jacob-zuma-2017-08-08) on President Jacob Zuma. A key dollar index was modestly lower, while gold futures edged higher.
(END) Dow Jones Newswires
August 08, 2017 08:37 ET (12:37 GMT)