Tesla's shares fall in premarket action after disappointing update on Model 3 production
U.S. stock futures on Tuesday pointed to a small gain at the open, setting the S&P 500 on course for its sixth up session in a row and for another record close.
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What stock benchmarks are doing
Futures for the S&P 500 rose by 2.20 points, or 0.1%, to 2,528.50, while those for the Dow Jones Industrial Average added 36 points, or 0.2%, to 22,543.00. Nasdaq-100 futures tacked on 9 points, or 0.2%, to 5,989.50.
On Monday, the S&P , Dow and Nasdaq Composite all achieved all-time closing highs (http://www.marketwatch.com/story/us-stock-futures-inch-higher-putting-the-sp-500-on-track-for-another-record-2017-10-02), shaking off Sunday night's mass shooting in Las Vegas (http://www.marketwatch.com/story/reports-of-dead-injured-after-mass-shooting-at-las-vegas-concert-2017-10-02).
The S&P has gained for five consecutive trading days, its longest winning streak since a six-session advance that ended Sept. 1. The Dow has moved higher in four straight sessions, while the tech-heavy Nasdaq has risen for five sessions in a row.
What strategists are saying
"U.S. markets have started the new week and quarter in the same way they finished the previous one, posting new record highs," said Michael Hewson, chief market analyst at CMC Markets UK.
"Yesterday's breakouts were also helped by a surprisingly strong ISM manufacturing survey (http://www.marketwatch.com/story/key-yardstick-of-us-manufacturers-touches-highest-level-since-2004-ism-finds-2017-10-02) for September, which showed no signs of any impact from the disruption caused by the recent hurricanes in the southeast of the country," Hewson added in his note Tuesday.
Some strategists sound pessimistic following the S&P's year-to-date gain of 13%, noting stocks could lose ground as the Federal Reserve ends its accommodative monetary policies.
"The Fed has demonstrated a commitment to move forward with policy normalization," said Joel Kruger, a strategist at LMAX Exchange.
"This comes head-to-head with a U.S. equity market that has all three major indices tracking well overbought on the monthly charts and certainly screaming out that at a very minimum, additional upside should be a very tough go from current levels, at least for the foreseeable future," he said.
Stocks in focus
Shares in Tesla Inc.(TSLA) fell 2% in premarket action. Late Monday, news came that third-quarter production for the electric car maker's Model 3 sedan was lower than anticipated, due to manufacturing bottlenecks (http://www.marketwatch.com/story/tesla-model-3-hit-by-production-bottleneck-that-slowed-initial-deliveries-2017-10-02).
Shares in MGM Resorts International(MGM) shed 0.6% premarket after falling 5.6% Monday (http://www.marketwatch.com/story/mgm-resorts-stock-falls-5-premarket-after-mandalay-bay-shooting-2017-10-02) in the wake of the mass shooting at the company's Mandalay Bay property in Las Vegas.
See:Las Vegas shooter Paddock had 42 guns and a 'bump stock' (http://www.marketwatch.com/story/las-vegas-shooter-paddock-had-42-guns-and-a-device-enabling-firing-at-an-automatic-rate-2017-10-03)
Gun-maker stocks such as Smith & Wesson parent American Outdoor Brands Corp.(AOBC) and Sturm, Ruger & Co. Inc. (RGR) also could see another active session after rallying Monday (http://www.marketwatch.com/story/gun-maker-stocks-surge-after-mass-shooting-in-las-vegas-2017-10-02). They often gain when traders think stricter regulations are coming, as sales can get a lift ahead of any change.
Home builder Lennar Corp. (LEN) traded higher ahead of the open after better-than-anticipated quarterly results (http://www.marketwatch.com/story/lennars-stock-set-for-rally-after-profit-and-sales-beat-expectations-2017-10-03), and payroll processor Paychex Inc.(PAYX) is also among the companies expected to post earnings before the opening bell.
What could help drive the market?
September figures for U.S. auto sales are due to roll out throughout the session, with economists polled by MarketWatch expecting 17.3 million vehicles sold overall.
Shares in General Motors Co.(GM) , Ford Motor Co.(F) and Fiat Chrysler Automobiles N.V.(FCA.MI) (FCA.MI) are likely to see active trading as these numbers hit.
Ford also will be in focus as new CEO Jim Hackett is due to provide an update on the company's progress (http://www.marketwatch.com/story/new-ford-chief-says-ready-to-tinker-under-the-hood-2017-09-30) at an investor meeting.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
Federal Reserve Gov. Jerome Powell is due to talk about U.S. financial regulations at 8:30 a.m. Eastern Time in Washington, D.C.
What other assets are doing
European stock markets (http://www.marketwatch.com/story/european-stocks-pause-for-breath-after-8-day-winning-run-2017-10-03) traded in tight ranges on Tuesday, taking a breather after an eight-day winning streak. Asian equity markets largely closed higher (http://www.marketwatch.com/story/hang-seng-nikkei-lead-market-gains-in-asia-2017-10-02), though some bourses remained closed for holidays.
Oil futures and gold futures were lower, as the ICE U.S. Dollar Index inched up.
(END) Dow Jones Newswires
October 03, 2017 08:13 ET (12:13 GMT)