Economy Shares Technology

US Stock Futures Gains, Dow Future up 100 Points

The markets opened with the US stock futures higher on the first day of September. The S&P 500 reached a record high in August, following a seven-month winning streak. The Dow Jones was up 115 points by 0.3%. The S&P 500 and Nasdaq 100 futures gained 0.4% and 0.3% respectively.

All futures were higher for the month of August. The Nasdaq composite gained 4%, making highs for a third month.  And the S&P 500 gained 2.9% for August, which was the best winning streak since 2017. The Dow Jones was not as far ahead as the other two futures; however, it rose by 1.2%.

In addition, shares from the casino sector were also higher, with Las Vegas Sands leading. The energy sector gains were led by Exxon Mobil.

In the banking sector, Citigroup and Bank of America jumped by 1%, leading banking shares. The sector contributing the most gains in August was financials, gaining by 5%.

JPMorgan gave solar stocks Sunrun a boost by predicting a comeback that will increase the stocks by 90%.

Video conferencing company, Zoom’s stock recovered after a drop of 16% on Tuesday. 

Stock are up; however, jobs disappoint.

Jobs data was disappointing, with the private sector adding only 374,000 jobs. This was far below the Dow Jones 600,000 estimate.

The ADP jobs report is a precursor of the nonfarm payroll data, due Friday. The estimated forecast is 720,000 jobs. Furthermore, the estimate is that unemployment will drop to 5.2%.

The S&P 500 has reached the 200-day moving average, and strategists are expecting a correction. Also, the third quarter is not a reasonable period for stocks historically. The Federal Reserve Bank has its next rate-setting meeting in September, and this is another factor that could impact the S&P 500.

“Although this bull market has laughed at nearly all the worry signs in 2021, let’s not forget that September is historically the worst month of the year for stocks,” said LPL Financial Chief Market Strategist Ryan Detrick. “Even last year, in the face of a huge rally off the March 2020 lows, we saw a nearly 10% correction in the middle of September.”

He added any weakness could be short-term and contained in the 5% to 8% range.

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Justin N. Richards

Justin N. Richards is a Florida-based technical analyst, market researcher, educator, and trader. Justin began his career in Chicago in 2001 performing futures market analysis for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange. He also worked for numerous brokerage firms during that time, all of which hold him in high regard, and he has been providing outstanding analysis services for traders worldwide ever since. Mr. Richards is an expert in the area of market patterns, price and time analysis as it applies to futures, Forex, and stocks. In addition to these talents, he provides educational services for investors looking to improve their analysis and trade skills. Justin has a B.A. in Business Administration from UCLA and an M.S. in Financial Markets and Trading from the Illinois Institute of Technology. Justin’s professional experience, education, and discipline, not only make him an exceptional analyst, they point him out as a reliable, hard working and intelligent business strategist who is dedicated to his craft.
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