US Stocks Seen Opening Firmer In New Week’s 1st Session As Traders Look To Week’s Key Data; Analyst Constructive Despite Bearish Signals – Alibaba Gr Holding (NYSE:BABA), Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), XPeng (NYSE:XPEV), NVIDIA (NASDAQ:NVDA), Horizon Therapeutics (NASDAQ:HZNP), Baidu (NASDAQ:BIDU), Amgen (NASDAQ:AMGN), Hawaiian Electric Indus (NYSE:HE), SPDR S&P 500 (ARCA:SPY)
Stocks appear to be on track for a cautious start on Monday as the Jack Hole Symposium is now in the rearview.
Cues From Past Week’s Trading:
The major averages had a mixed close in the week ended Aug. 25, with the Nasdaq Composite and the S&P 500 indices carving out noteworthy gains. On the other hand, the 30-stock blue chip Dow Industrials Average and the Russell 3,000 Index posted weekly declines.
The sentiment in the first half of the week was markedly buoyant as traders began baking in a superlative earnings report from AI-Levered chipmaker Nvidia Corp. NVDA. The optimism waned ahead of Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, and the averages pulled back sharply on Thursday before making a comeback on Friday.
US Index Performance In Week Ended Aug. 25
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +2.27% | 13,590.65 |
| S&P 500 Index | +0.82% | 4,405.71 |
| Dow Industrials | -0.45% | 34,346.90 |
| Russell 2000 | -0.31% | 1,853.63 |
Analyst Color:
Carson Group’s Ryan Detrick said the market trend is still constructive and is working off some of the over-the-top bullishness seen a month ago. He noted that the S&P 500 Index is still above the August peak and June lows.
The analyst noted that the 10-day equity put-call ratio is the highest this year, suggesting bearish sentiment is building in the market. He added that the American Association of Individual Investors’ survey showed that bears outnumbered the bulls for the first time since early June.
Futures Today
Futures Performance On Monday
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.26% |
| S&P 500 | +0.17% |
| Dow | +0.25% |
| R2K | +0.07% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY rose 0.17% to $440.73, and the Invesco QQQ ETF QQQ gained 0.33% to $365.23, according to Benzinga Pro data.
Upcoming Economic Data:
The economic calendar for the week is back-end loaded, with a slew of job market readings likely taking center stage.
The August non-farm payrolls report is due on Friday, ADP’s private payrolls report is due Wednesday, the results of the JOLTS survey for July are scheduled for Tuesday, and the weekly jobless claims data customarily released on Thursday will likely be on investors’ radar.
Traders may also be keen to sift through the results of two separate house price surveys for June, the pending home sales data for July, the second reading of second-quarter GDP, and August’s personal income and spending data.
On Monday, the Treasury will auction three six-month bills at 11:30 a.m. EDT and two five-year notes at 1 p.m. EDT.
See also: Best Futures Brokers
Stocks In Focus:
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Hawaiian Electric Industries, Inc. HE shares rebounded by over 40% in premarket trading following the past week’s 20%+ decline amid worries concerning the impact of the Maui fire.
- Horizon Therapeutics Public Limited Company HZNP rose about 5% following a Federal Trade Commission move that would allow the completion of the deal for the biotech company to be acquired by Amgen, Inc. AMGN.
- China-related stocks saw some buoyancy after China announced lowering the stamp duty on stocks by half to reinvigorate the sagging stock market. Alibaba Group Holding Limited BABA and Baidu, Inc. BIDU climbed over 1% each.
- XPeng, Inc. XPEV rallied nearly 4.5% on the China move and the company’s decision to buy DiDi’s smart electric vehicle assets for $744 million.
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.06% to $79.88 in early European session on Monday after pulling back 1.75% in the week ended Aug. 25.
On Monday, the benchmark 10-year Treasury note edged down 0.004 percentage points to 4.235%.
Most Asian averages advanced on Monday, taking heart from measures announced by China to boost its stock market and the positive close by Wall Street on Friday. European stocks were higher in late-morning deals. The U.K. market was closed for a public holiday.
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