US stock index futures fell on Sunday overnight, after the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday.
Dow-related futures fell 69 points, or 0.2%. The S&P 500 futures were down 0.3%, while the Nasdaq 100 futures were down 0.34%.
The shares come from a week of gains, as earnings exceeded estimates and strong economic data raised major averages. S&P and Dow advanced 1.38% and 1.18% last week, respectively, for the fourth consecutive week of gains, while Nasdaq Composite posted its third positive week in a row.
The earnings season began last week, when major banks reported quarterly results, and a number of companies are set to provide 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 earnings on Monday.
Despite trading shares around record levels, UBS raised its forecast for that year on Friday. The company now expects the S&P 500 to close in 2021 at 4,400, which is about 5% above where the benchmark closed on Friday.
“While investing at historic highs may be daunting for some, we believe there are more advantages ahead,” the company wrote in a note to clients. “Following two rounds of incentives in that quarter and the ongoing vaccination effort, there is growing evidence that US economic activity is booming. The latest job data, sentiment values business and retail sales show a strong recovery. “
The Russell 1000 Growth Index surpassed in the last month, gaining 10% compared to the Russell 1000 Value index increase of 4%, recovering some of the recent losses after an increase in yields caused a rotation outside the technology and growth-oriented areas. market.
However, in the last three months, the stock has performed even better, and Bank of America believes that there are several benefits for the group. On Friday, analysts at the firm said it would “stay with the value”, noting that it is still trading at a “strong reduction compared to growth, despite the recent strength”.
On the coronavirus front, White House chief adviser Dr. Anthony Fauci said he expects the United States to resume administration of the Johnson & Johnson vaccine. The Food and Drug Administration last week urged states to temporarily stop using the single-dose vaccine “out of an abundance of precaution” after six women developed a rare blood clotting disorder.
“My estimate is that we will continue to use it in one form or another,” Fauci said Sunday in an interview with NBC’s “Meet the Press.” “I seriously doubt it if it just cancels it out. I don’t think it will happen. I think there will probably be some kind of warning or restriction or risk assessment.”
Bitcoin withdrew over the weekend after hitting a record high of $ 64,841 on Wednesday morning, according to Coin Metrics. On Sunday night, the cryptocurrency traded at $ 55,805.
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