If Nasdaq breaks under 5,600, you could see panic selling: analyst
U.S. stock-index futures pointed to a higher open on Monday, with the Dow industrials aiming to hit a fresh record in early trading as technology shares looked to rebound from recent weakness.
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The indicated U.S. gains follow strength across global equities, as European and Asian benchmarks move higher.
Dow Jones Industrial Average futures rose 72 points, or 0.3%, to 21,406, suggesting the Dow will open above the all-time closing high of 21,384.28 hit Friday, the 21st record for 2017. S&P 500 futures added 7 points, or 0.3%, to 2,438. Nasdaq-100 futures shot up 46 points, or 0.8%, to 5,729.5.
The outsize move implied by Nasdaq futures was largely due to the premarket gain in technology shares, as the index is heavily weighted toward the sector.
The S&P 500 index finished less than a point higher Friday and flat for the week. On Friday, the Nasdaq Composite fell 0.2% (http://www.marketwatch.com/story/us-stocks-set-to-fight-for-positive-ground-housing-data-ahead-2017-06-16), extending a rough patch for the tech sector. A bounce for large Nasdaq stocks would follow a second-straight weekly loss. Leading the way higher on Monday, shares of Apple Inc.(AAPL) and Amazon.com Inc.(AMZN) were up around 1% in thin premarket trading.
Read: Did you buy a tech ETF to cash in on Amazon? Here's some bad news (http://www.marketwatch.com/story/did-you-buy-a-tech-etf-to-cash-in-on-amazon-heres-some-bad-news-2017-06-16)
Investors are likely to keep tech stocks in focus this week (http://www.marketwatch.com/story/tech-selloff-remains-a-concern-after-fed-hike-tepid-economic-growth-2017-06-17), amid concerns the sector could start to drag down the broader market (http://www.marketwatch.com/story/tech-selloff-remains-a-concern-after-fed-hike-tepid-economic-growth-2017-06-17), given the Federal Reserve has indicated it will tighten policy and economic data has failed to inspire. That major indexes are trading near records at a time when data has painted a mixed picture of the economy has some wondering whether the market's valuations are justified.
"We are deeply concerned about the market's valuation," said Phil Davis, chief executive officer at PSW Investments, who said he was viewing the 5,600 on the Nasdaq as a key level, one that is about 2.3% below its Friday closing price. "If we fail to hold 5,600, then you will begin to see panic setting in as fund managers are forced to consider the reality of their overvalued holdings."
See:There's no '90s-style bubble in tech stocks, says Cumberland's Kotok (http://www.marketwatch.com/story/theres-no-90s-style-bubble-in-tech-stocks-says-cumberlands-kotok-2017-06-16)
Economic docket: Chicago Fed President Charles Evans is slated to give a speech to the Money Marketeers of New York University (https://moneymarketeers.org/upcoming-events/#!event-list) at 7 p.m. Eastern.
Stocks to watch: Shares of Boeing Co. (BA) could be active after the aircraft maker said more than 10 customers have committed to buying its 737 Max 10 airplanes (http://www.marketwatch.com/story/boeing-says-it-already-has-customers-for-single-aisle-jetliner-the-737-max-10-2017-06-19). It made the announcement at the 2017 Paris Air Show on Monday. Among the orders, General Electric Co.'s(GE) plane-leasing unit GECAS, signed an order for 20 of the planes.
Read:Boeing sees big gap in the market for a revamped jetliner--but won't rush in (http://www.marketwatch.com/story/boeing-sees-big-gap-in-the-market-for-a-revamped-jetliner-but-wont-rush-in-2017-06-19)
Alphabet Inc.'s(GOOGL) Google Inc. announced a four-step plan to fight terror, among them using technology to spot extremist and terror-related videos, in a blog post Sunday (https://blog.google/topics/google-europe/four-steps-were-taking-today-fight-online-terror/).
Europe inspires: While Asian stocks kicked the week off higher, even more robust gains were seen for European stocks on Monday. The French CAC 40 index rose 0.9% after French President Emmanuel Macron's pro-Europe Union party and its centrist ally saw a decisive victory in parliamentary elections (http://www.marketwatch.com/story/macrons-party-on-track-for-dominant-win-in-french-parliament-2017-06-18). The Stoxx Europe 600 was up about 0.6%.
The FTSE 100 index added 0.5%. U.K. officials will be meeting with their Brussels counterparts on Monday to start talks over Britain leaving the European Union. Meanwhile, in what police are calling a terrorist attack, a van rammed into a crowd near a mosque (http://www.marketwatch.com/story/one-dead-several-injured-after-car-rams-crowd-in-finsbury-park-london-2017-06-19) in North London, leaving one person dead and several injured.
Other markets: Oil prices were higher (http://www.marketwatch.com/story/oil-prices-kick-off-the-week-with-a-move-down-2017-06-19), while the dollar held steady. The pound firmed up ahead of those Brexit talks (http://www.marketwatch.com/story/pound-steady-with-brexit-talks-due-to-kick-off-2017-06-19). Gold prices slipped $4 to $1,252.40 an ounce.
(END) Dow Jones Newswires
June 19, 2017 09:20 ET (13:20 GMT)