Technology stocks led US stock futures higher ahead of a blockbuster week in earnings, with investors waiting for results from companies like Apple, Tesla and Facebook.
Futures pegged to the S&P 500 were up 0.3%, indicating an expansion in profits that closed the index nearly 2% higher and hit a record Friday. Futures pegged to the Nasdaq-100 were up 1%, indicating a rally in technology stocks after the opening bubble.
China’s most valuable internet company, Tencent Holdings, jumped nearly 11% to a record high in Hong Kong trading. Tencent portfolio company Kuaishou Technology, a TikTok-style video recording app, announced an upcoming IPO that can estimate this value at around $ 60 billion. The Amsterdam-listed shares of tech investment group Prosus, one of Tencent’s largest shareholders, rose by 5.5%.
More than one-fifth of the broad S&P 500 index and one-third of the components of the Dow Jones Industrial Average will publish earnings this week. Kleenex and Huggies maker Kimberly Clark will report Monday before the market opens. Starbucks, Verizon and Microsoft are scheduled for Tuesday. Other major tech companies will report later in the week, including Apple, Tesla and Facebook on Wednesday.
“The way management will communicate its outlook will be critical to the markets,” said Sophie Chardon, a cross-asset strategist at Lombard Odier. Investors will have to weigh the possibility of vaccinations against the reality of new lockdowns and the impact on any business.