Netflix set to soar after blowout results
The Dow and S&P 500 were poised to open at fresh records on Tuesday, with investors cheered by an end to a U.S. government shutdown and signs that earnings season won't disappoint those looking for another reason to buy stocks.
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What are the main benchmarks doing?
Dow Jones Industrial Average futures rose by 100 points, or 0.4%, to 26,295, while S&P 500 futures rose 5.55 points, or 0.2%, to 2,840.75. Nasdaq-100 futures added 22.50 points, or 0.3%, to 6,953.50.
All three major stock market indexes closed at record levels on Monday (http://www.marketwatch.com/story/dow-futures-retreat-as-government-shutdown-stretches-into-3rd-day-2018-01-22) amid signs that U.S. politicians were nearing an agreement on a temporary budget deal. The S&P 500 rose 0.8% to 2,832.97, the Nasdaq Composite Index rallied 1% to 7,408.03 and the Dow Jones Industrial Average gained 0.6% to 26,214.60.
Read: Stock market headed for 'nasty surprise' if this signal proves correct (http://www.marketwatch.com/story/why-a-slowdown-in-cash-flow-growth-is-bad-news-for-stocks-2018-01-22)
What's driving markets?
After U.S. markets closed on Monday, Congress passed a three-week funding measure (http://www.marketwatch.com/story/shutdown-averted-for-now-as-congress-passes-temporary-budget-measure-2018-01-23) that brought a halt to the three-day shutdown, with the bill then signed by President Donald Trump. The agreement keeps the government running up to Feb. 8, though underlying disagreements on immigration and other topics between the two major parties remain.
With that crisis averted for now, there's little to stop stocks from pushing out yet another set of records. Investors who have been buying stocks on the view that the economy is on an upswing were likely cheered by Monday's upbeat global outlook from the International Monetary Fund (http://www.marketwatch.com/story/imf-sees-risk-of-a-financial-market-correction-2018-01-22).
There is no economic data due for Tuesday.
Investors were likely to watch out for comments from financial and business leaders set to gather in Davos, Switzerland for the World Economic Forum, which kicks off Tuesday. With a shutdown averted, President Trump is also expected to attend, and scheduled to speak on Friday.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
(http://www.marketwatch.com/economy-politics/calendars/economic)What are strategists saying?
"With the government shutdown in the rearview mirror, investors could shift their focus back to the slew of corporate earnings due for release as earning seasons continues at full throttle," said Jasper Lawler, head of research at London Capital Group, in a note.
" (http://www.marketwatch.com/story/a-government-shutdown-could-reintroduce-investors-to-the-fact-that-markets-go-down-2018-01-22)The Teflon market continues in earnest and nothing sticks and very little is of concern, as has been the case for some time with the same macro factors keeping the positive trend in play," wrote Chris Weston, chief market strategist at IG, in a note to clients.
"Improving corporate earnings has also been a theme, while developed market central banks are mostly behind the curve and again this is supportive of ever easier financial conditions and supportive of the grind higher in U.S. stocks." he added.
Which stocks look like key movers?
Johnson & Johnson(JNJ) , Travelers Cos.(TRV) , Procter & Gamble(PG) and Verizon Communications(VZ) are due to report ahead of the opening bell.
Netflix Inc. (NFLX) was poised for a strong session, building on gains of nearly 10% late Monday and pushing the company toward a $100 billion market-capitalization valuation after it beat forecasts for earnings and new net subscribers.
Read: Netflix sees sharks approaching from both sides in Apple and Disney (http://www.marketwatch.com/story/netflix-sees-sharks-approaching-from-both-sides-in-apple-and-disney-2018-01-22)
(http://www.marketwatch.com/story/netflix-sees-sharks-approaching-from-both-sides-in-apple-and-disney-2018-01-22)And:Kevin Spacey scandal cost Netflix $39 million (http://www.marketwatch.com/story/sexual-harassment-scandals-cost-netflix-39-million-2018-01-22)
First Solar Inc. (NFLX) could add to an 8% climb in Monday's after-hours session after the U.S. government approved tariffs on solar-panel imports (http://www.marketwatch.com/story/us-targets-china-with-steep-tariffs-on-solar-panels-washing-machines-2018-01-22). Shares of Whirlpool Corp.(WHR) could move, following a 1.8% gain after hours on Monday as tarrifs were also approved for imported washing machines for home use.
What are other assets doing?
The ICE U.S. Dollar Index was modestly higher, building on gains after the government shutdown ended. Monday's U.S. stock gains fueled a rise for European stocks and Asian markets, which saw 1%-plus gains across several markets (http://www.marketwatch.com/story/asian-markets-heat-up-after-fresh-records-on-wall-street-2018-01-22). Gold prices rose modestly, while oil futures (http://www.marketwatch.com/story/oil-prices-edge-up-after-saudi-urges-producers-to-cooperate-into-2019-2018-01-22) were higher.
(END) Dow Jones Newswires
January 23, 2018 03:52 ET (08:52 GMT)