U.S. futures linked to the stock market exhibited marginal fluctuations during the early hours of Tuesday following a historic milestone, as the Dow Jones Industrial Average triumphed above the 38,000 threshold for the first time in its existence.
The Dow futures experienced a nominal dip of 17 points, equivalent to a 0.04% decrease. Meanwhile, S&P 500 futures registered a subtle uptick of 0.03%, with Nasdaq 100 futures demonstrating a more pronounced increase at 0.12%.
In the extended trading session, United Airlines witnessed a robust surge of over 6%, propelled by the disclosure of formidable fourth-quarter outcomes. Nevertheless, a somber undertone permeated the optimistic report as the airline anticipates a financial setback in the first quarter due to the grounding of Boeing 737 Max 9 aircraft, implicated in the recent Alaska Airlines emergency.
United’s upcoming earnings call on Tuesday is poised to delve into inquiries regarding the aircraft grounding and any compensatory measures from Boeing.
In tandem with United, shares of fellow airline operators witnessed positive momentum. American Airlines and Southwest Airlines recorded gains of approximately 3%, while Alaska Air Group and Delta Air Lines observed an ascent of approximately 2% each.
Monday etched itself into the records as a noteworthy trading session for major indices. The Dow, comprising 30 stocks, achieved a milestone surge of over 100 points, marking a 0.4% upswing and culminating in a historical close above 38,000 for the first time. Simultaneously, the S&P 500 charted a 0.2% rise, reaching a fresh pinnacle, and the Nasdaq Composite registered a 0.3% gain.
These developments amplify the S&P 500’s upward trajectory, officially entering bull market territory last Friday by surpassing previous intraday and closing all-time highs from January 2022.
However, investors are immersed in contemplation regarding the sustainability of these gains, particularly as the prevailing rally accentuates tech stocks like Nvidia. Amid this, broader market participation remains lackluster, exemplified by the underwhelming performance of the small-cap Russell 2000, trailing behind by 2% this month.
Cheryl Young, a private advisor at the Rockefeller Global Family Office, conveyed her sentiments on CNBC’s “Closing Bell” on Monday, asserting, “The market is priced to perfection right now… any kind of shocks could cause some pretty big pullbacks here. So, I still love most of these Magnificent Seven names, but I’m adding protection right now.”
Corporate earnings season remains in full swing this week. Johnson & Johnson, Procter & Gamble, and Lockheed Martin are slated to disclose their results before the market opens on Tuesday, while Netflix will unveil its earnings post-market closure.