Stock market news live updates: Stock futures open flat, hovering near records
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Stock futures opened little changed as the overnight session kicked off Tuesday evening.
Earlier during the regular trading day, Dow set a fresh record closing high, while the S&P 500 and Nasdaq touched and then retreated from record intraday levels. Shares of Chevron (CVX), E.W. Scripps & Co. (SSP) and Verizon (VZ), the parent company of Yahoo Finance, jumped in late trading after Warren Buffett's Berkshire Hathaway disclosed new stakes in each of the companies. Bitcoin prices (BTC-USD)drifted above $49,000, after breaking above $50,000 for the first time ever earlier in the day.
Markets over the past month have priced in the likelihood that additional, significant fiscal stimulus will help propel the economic recovery and work alongside ongoing monetary stimulus from the Federal Reserve. The yield on the benchmark 10-year Treasury note hit a one-year high of about 1.31% on Tuesday, amid hopes of a firming economy.
West Texas intermediate crude oil prices (CL=F) surged to settle above $60 per barrel for the first time since January 2020, as newer supply concerns compounded with optimism over a post-pandemic resurgence in demand for travel and fuel. Domestic oil output has slumped by nearly one-third due to freezing temperatures in Texas, Bloomberg reported on Tuesday.
As stocks continue to set fresh record highs, some strategists have warned that markets may need to take a breather before moving higher later this year.
"We still believe the market is ripe for a pullback, but the focus should remain on our core fundamental thesis and the global reflation theme," Cannacord Genuity strategist Tony Dwyer said in a note Tuesday. "The macro backdrop and market action coming off the March 2020 low continues to track the gains coming out of the Great Financial Crisis [of 2009], which means corrections may be coming followed by even more gains."
Even still, others noted that those with a longer-term investment horizon may benefit most by staying the course.
"It's always a nervous situation for investors when markets keep making new highs, and certainly there is froth in some parts of the market. But the question around the stimulus, the roll-out of the vaccines, all of these factors that go into the price in the stock market, ultimately it boils down to when will the economy recover to pre-pandemic levels, and when will earnings get to those levels as well," James Liu, Clearnomics founder and CEO, told Yahoo Finance.
"Right now, consensus estimates are that by the end of 2021, we should see a case where we get to about $170 in S&P earnings, which is essentially getting back to where we began pre-pandemic. And if that's the case, then it does justify some of the enthusiasm we have in the stock market today," he added. "That's a little bit different than saying the stock market will keep going up in a straight line. Obviously, that's probably not the case. But it is a reason for most everyday investors to basically stay diversified and stay invested despite the all-time highs."
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6:10 p.m. ET Tuesday: Futures open mixed
Here’s where markets were trading Tuesday evening as the overnight session kicked off:
S&P 500 futures (ES=F): 3,925.25, down 2.5 points or 0.06%
Dow futures (YM=F): 31,449.00, down 9 points or 0.03%
Nasdaq futures (NQ=F): 13,742.00, down 25.75 points or 0.19%
New York Stock Exchange (NYSE) at Wall Street on January 12, 2021 in New York City. - US stocks on January 11, 2021 retreated from records set last week as political uncertainty, including efforts to remove President Donald Trump from power, has finally shaken investors. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twittr Steemit: @yahoofinancelive
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