Dow Jones Industrial Average futures point toward a strong day for the stock market in today's shortened trading session.
Futures on the Dow Jones Industrial Average (DJIA) are in the green early Tuesday morning as the stock market looks to build upon the all-time highs it created in yesterday’s trading session. It’s likely that the Dow could enjoy another “Santa Claus rally” session today as the market had ignored negative economic data on Monday.
Positive details about the U.S.-China trade deal and the resignation of Boeing (NYSE: BA) CEO were enough to help the Dow record another day in the black.
Moreover, the Dow saw a sharp fall in trading volumes Monday. Something similar can be anticipated today thanks to the lack of trading activity in the shortened trading session that’s going to last just three and a half hours.
Dow Jones futures are up 20 points, or 0.07%, as at 6.05 am ET. The index has gained decent momentum in the early hours of the day, pointing toward a positive opening for the stock market.
S&P 500 futures are also up 0.07%, while Nasdaq Composite futures have logged near-identical gains at 0.05%.
Monday’s rally shows that the stock market is positive heading into the Christmas holidays. The Dow’s rally is unlikely to be interrupted Tuesday as there isn’t much action in the cards today, barring a couple of data points.
The Philadelphia Fed and the Richmond Fed are due to release manufacturing surveys at 8:30 am ET and 10 am ET, respectively. But as we have already seen, the Dow shrugged off the Commerce Department’s report about durable goods orders yesterday.
Durable goods orders for the month of November fell 2%. October’s gain was also revised downward to 0.2%. Even though this was the largest monthly decline seen since May, the stock market shrugged it off thanks to Boeing stock’s rally. Shares of the aircraft major – and the Dow’s largest component – were up nearly 3% Monday.
Boeing stock is once again in positive territory this morning, and this could have a positive impact on the stock market.
In the end, don’t be surprised to see the Dow holding on to the gains it has clocked in recent trading sessions thanks to limited trading activity and the absence of any significant events.
Last modified: September 23, 2020 1:25 PM