By Steve Goldstein
GE shares soar after plan to split into 3 companies
U.S. stock index futures were mixed Tuesday, putting the S&P 500 in danger of snapping its longest winning streak in more than two years.
Though the advance was modest, S&P 500 on Monday scored its the eighth straight gain, its longest winning streak since April 2019. The Dow industrials , S&P 500, Nasdaq Composite and Russell 2000 all finished at record highs after the House of Representatives late Friday passed infrastructure spending legislation that’s expected to be signed into law by President Joe Biden.
What’s driving markets
The term “melt up” is increasingly being used to describe the action in stocks.
“As scary as these heights feel, the market continues trading well. We’ve been solidly overbought for weeks, yet buyers keep throwing even more money at these record highs,” said Jani Ziedins, who authors the Cracked Market blog.
Read: ‘It’s a melt-up’: U.S. stocks are on an unusually strong run heading into the holidays
The Federal Reserve’s twice-a-year financial stability report said valuation measures are high across most asset classes. It noted that stock prices relative to earnings forecasts are at the upper end of its historical distribution, and the yields on Treasury securities, corporate bonds and leverage loans are at low levels relative to their history.
Traders will have to consider the possibility of a change in leadership at the Federal Reserve, after Bloomberg News reported that Fed. Gov Lael Brainard interviewed for the role currently held by Jerome Powell. Powell’s still considered likely to be nominated to serve a second term as chairman.
U.S. stock index futures remained mixed early Tuesday after the October producer price index rose 0.6%, in line with expectations.
Earlier, the National Federation of Independent Business said its gauge of small-business confidence slipped by 0.8 points to 98.2 last month, its lowest reading since March.
Which companies are in focus?
What are other markets doing?
(END) Dow Jones Newswires
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