US stock index futures fell during overnight trading on Sunday, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday.
Futures contracts linked to the Dow fell 69 points, or 0.2%. S&P 500 futures were down 0.3%, while Nasdaq 100 futures were down 0.34%.
Stocks are up after a week of gains as earnings topped estimates and strong economic data pulled up the major averages. The S&P and Dow were up 1.38% and 1.18% respectively last week for their fourth consecutive week of gains, while the Nasdaq Composite posted its third positive week in a row.
The earnings season started last week when the major banks reported quarterly results, and a large number of companies will provide their updates this week. Ten Dow components will report, along with 72 S&P 500 companies.
Coca-Cola, IBM and United Airlines are among the names that will report revenues on Monday.
Despite stocks trading around record levels, UBS raised its forecast for the year on Friday. The company now forecasts the S&P 500 to end at 4,400 in 2021, which is about 5% higher than where the benchmark index closed on Friday.
“While investing at an all-time high may be daunting for some, we think there are more benefits to come,” the company wrote in a note to clients. “After two rounds of stimulus in the quarter and ongoing vaccination efforts, there is growing evidence that US economic activity is picking up. The latest job data, business sentiment data and retail sales all point to a strong recovery.”
The Russell 1000 Growth Index outperformed the Russell 1000 Value Index over the past month, up 4%, up 10% compared to the rise in the Russell 1000 Value Index. the market.
However, value stocks are still outperforming over the past three months, and Bank of America believes there is more upside potential for the group. On Friday, analysts said the company was “holding on to value,” noting that despite its recent strength, it is still trading at a “sharp discount to growth.”
As for the coronavirus, White House chief medical adviser Dr. Anthony Fauci that he expects the US to resume administration of the Johnson & Johnson vaccine. The Food and Drug Administration last week asked states to temporarily discontinue use of the single-dose vaccine “out of an abundance of caution” after six women developed a rare blood clotting disorder.
“I estimate we will continue to use it in some form or another,” Fauci said Sunday during an interview on NBC’s “Meet the Press.” ‘I seriously doubt they will just cancel it. I don’t think that’s going to happen. I do think there will probably be some kind of warning or limitation or risk assessment. ‘
Bitcoin pulled back over the weekend after hitting a record high of $ 64,841 Wednesday morning, according to data from Coin Metrics. On Sunday evening, the cryptocurrency traded at $ 55,805.
Become a smarter investor with CNBC Pro
Get stock selection, analyst calls, exclusive interviews and access to CNBC TV.
Sign up to get a free trial today