Index Futures

If you have little exposure to the futures market, you may, at first, feel perplexed by Dow Futures. Whether it is better to invest in the Dow Jones or the S&P 500 will depend on the specific investor, their investment goals, and their risk tolerance. The Dow Jones consists of 30 companies while the S&P 500 consists of 500 companies, so there is more diversification in the S&P 500. In regards to performance, depending on the time frame evaluated, one will perform better than the other. EV pioneers Li Auto, Nio and XPeng reported September and Q3 deliveries on Sunday.

But less than 70 or the slightly more than 500 member stocks traded positively, meaning the lion’s share of companies were down in the session. The Dow Jones Industrial Average was lower Monday even after U.S. legislators were able to come to a short-term agreement that staved off a government shutdown. Stocks had closed out a losing September and third quarter on Friday. The S&P 500 fell 4.9% in September to post its worst month of 2023 and declined 3.7% for the quarter. But understand that trading index futures is complicated since are highly leveraged investments.

The yield on benchmark Japanese government bonds hit its highest level in a decade after the central bank published an optimistic survey of business sentiment. The Japanese yen fell to its lowest intraday trading value in around how to buy waves a year. Institutional investors, particularly, use index futures to lock in a future buy or sell price. The trade is based on where they think the market is headed or to hedge their positions against different scenarios.

  • Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
  • “A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the company said.
  • They enable investors to predict or contemplate the future value of stocks prior to the opening bell.
  • Still, Dow index futures are a popular tool for getting broad-based exposure to U.S. equity or hedging such positions.

Crypto prices rallied on Monday, pushing bitcoin to its highest level more than six weeks. The Institute for Supply Management’s manufacturing index for the month posted a reading of 49, 1.4 points better than August and a touch higher than the Dow Jones estimate for 48. While the index ostensibly measures the percentage of companies reporting expansion versus contraction, the ISM said a reading above 48.7 has been consistent with growth. UBS analyst William Grippin initiated coverage of residential solar company Sunnova Energy with a buy rating and a price target that suggests shares can gain more than 50%. The billionaire hedge fund manager said he believes long-term Treasury yields could shoot even higher in the current environment.

Bitcoin rises to highest level since August

A stock market rally attempt is underway, with the major indexes coming off midweek lows. But the rebound has been lackluster at best, especially for the Dow Jones. Friday’s retreat from intraday highs raises the possibility that best shares to buy the rally attempt will end up being a short-lived bounce. Better news came from China, where official data over the weekend showed the country’s manufacturing sector expanded in September for the first time in six months.

Stock indexes finished mixed, and bond yields higher, in the first session since Republicans and Democrats set aside policy differences over the weekend to avoid a government shutdown. The exchange exists to keep trading fair and eliminate risk—such as one party not delivering on the contract. By having all of the futures contracts cleared through the exchange, this risk is eliminated because the exchange serves to guarantee every position.

  • For the quarter, BYD sold 824,001 vehicles, including 431,603 personal BEVs.
  • Friday marked day three of a rally attempt on the S&P 500 and Nasdaq, it but hasn’t made much headway.
  • J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor.
  • A trader can buy an E-mini Dow contract for about $5,500—and that futures contract is worth $5 for every point on the DJIA.
  • Every stock in the S&P 500 Energy Index is trading lower Monday as West Texas Intermediate crude oil falls 1.5% to below $90 a barrel.
  • Among growth ETFs, the Innovator IBD 50 ETF (FFTY) climbed 1.45% last week.

Pershing Square’s Bill Ackman sounded alarms on the economy, which he believes has begun to decelerate on the back of aggressive rate hikes. Saudi Arabia could start to ease its additional voluntary supply cut of 1 million barrels per day (bpd), Reuters said Monday, citing a report from ING analysts. Regional growth in the Asia-Pacific region is estimated to come in higher than average growth projected for all other emerging market and developing economies. To be sure, the recent numbers are lower than were previously projected. The World Bank forecasts growth in in the developing East Asia and Pacific region to remain strong at 5% in 2023.

Analyst Opinions for Dow Jones

However, its expects growth to ease in the second half of 2023 and fall to 4.5% in 2024, according to its regional update published on Sunday. “I do think the approval and launch of these [ether futures] products is a positive sign that we’re on the path to spot crypto products in the relatively near future,” Bitwise CIO Matt Hougan said. “Bankers remain pessimistic, with expectations for increasing loan nonperformance, decreasing loan demand and worsening business activity over the next six months,” the Dallas Fed stated. Loan volume and demand both are deteriorating while credit standards, particularly in commercial real estate, are tightening, according to a Dallas Federal Reserve survey released Monday. Cathie Wood’s Ark Innovation ETF (ARKK) fell about 2% on the day.

Stock Market News Today, 10/02/23 – Indices Mixed amid New Economic Data

“With more data supporting the case for CGMs to be un-impacted or positively impacted by GLP-1s and bullish fundamentals, we think the perceived overhang could be removed sooner on CGMs than on pumps or OSA stocks,” he said. “A what is trade size sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the company said. “Our 2023 volume target of around 1.8 million vehicles remains unchanged.”

In a futures contract, both parties have an obligation to perform their part of the deal. Dow Futures are commodity trades, with set prices and dates for delivery in the future. They enable investors to predict or contemplate the future value of stocks prior to the opening bell. An index tracks and measures the price of a collection of assets, such as a group of stocks. Index futures are derivative financial contracts, meaning they derive their value from an underlying asset, in this case, the index.

Renaissance Macro Research points to potential bearish shift in U.S. stock market

Tesla said it delivered 435,059 vehicles in the third quarter, while producing 430,488 during that time period. That’s below second-quarter delivery and production numbers of 466,140 and 479,700, respectively. The manufacturing sector in September broke a nine-month streak of contracting, albeit barely. The S&P 500 utilities sector fell more than 3% Monday morning, reaching its lowest level since September 2020. NextEra Energy, AES and Eversource led the declines, losing 5.2%, 3.8% and 2.9%, respectively. “This fourth quarter could be a setup for complacency and in terms of what happens next,” Saccocia said Monday on CNBC’s “Halftime Report.”

U.S. stocks are wobbling as investors worry about a looming government shutdown

Friday’s fade shows why investors shouldn’t rush to buy stocks at the first uptick. Yes, a market rally attempt is underway, but really hasn’t shown evidence that it’s anything more than a brief bounce within a correction. The EV giant is expected to report third-quarter production and deliveries before Monday’s open.

Caixin’s service-sector gauge fell 1.6 points to 50.2, a nine-month low. “There’ll be a lot of unwinding of government shutdown selling from last week, which will be good,” he said. September was the worst month of the year for the S&P 500 and Nasdaq Composite.

Stock Market Today: Dow ends lower on rising Treasury yields as US averts shutdown

Trade in Evergrande shares was suspended last Thursday after Bloomberg reported the company’s chairman has been placed under police surveillance. Get this delivered to your inbox, and more info about our products and services. Use the Dow futures, S&P futures and Nasdaq futures to get a feel for where the market may be headed, not for exact predictions of pricing.

A follow-through day could come as soon as Monday, but these major indexes aren’t that far from undercutting recent lows. The government shutdown has been avoided, but Congress could be back in the same place in 45 days. Crypto-related stocks Coinbase, Marathon Digital, MicroStrategy and Riot all rose more than 5% in premarket trading. I think the economy is starting to slow,” Ackman said on CNBC’s “Squawk Box.” “The level of real interest rates is high enough to slow things down.” Dominion Energy traded at lows not seen since January 2011, with shares last down 6%.

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