Stock Market Today: Dow futures steady as stocks eye nine-day winning streak

Here are the top stories to read ahead of Tuesday trading:

Latest Updates

More good news will be needed before markets start to rally, a strategist says.

In a note, Dennis DeBusschere, chief market strategist at New York firm 22V Research, explained that in the wake of the mini-crash at the start of this month, “more consistent optimism” will be needed to drive a surge in markets.

Recently published economic data has confirmed that recession fears sparked by the last jobs report were overdone.

DeBusschere said the recent publication of U.S. jobless claims data, ISM Services data, and the New York Fed’s August business leaders survey had confirmed the strength of the economy.

“The short term recession scare… appears to be over,” DeBusschere said.

Energy stocks are under pressure after the price of U.S. West Texas crude dipped to $74 a barrel, a two-week low.

Traders said hopes for a ceasefire between Israel and Hamas eased supply concerns, while worries about weakening demand from China as its economy struggles damped demand expectations.

In London, shares of BP and Shell dropped roughly 2%, while premarket action on Wall Street saw Chevron and ConocoPhillips a touch softer, though off early lows.

Stocks making notable moves in Tuesday’s premarket action:

Palo Alto Networks shares are up more than 2% after the cybersecurity group delivered an upbeat earnings report.

Shares of bitcoin investor MicroStrategy are rising nearly 4% and the stock of crypto trading platform Coinbase Global is up more than 2% as the price of bitcoin moves back above $60,000.

Hawaiian Airlines shares are jumping 10% after the DOJ cleared its takeover by Alaska Air.

Boeing shares are dipping 1% after the aerospace company said it would be grounding its four-plane test fleet of the 777x after

Here are some of the companies presenting earnings on Tuesday:

Before the opening bell.

Lowe’s

Medtronic

Navios Maritime Partners

After the close.

Toll Brothers

Keysight Technologies

Jack Henry & Associates

La-Z-Boy

Coty

How are stock-index futures trading:

S&P 500 futures are adding 0.1%.

Dow Jones Industrial Average futures are up 0.02%.

Nasdaq 100 futures are gaining 0.1%.

On Monday, the Dow Jones Industrial Average rose 237 points, or 0.58%, to 40,897, the S&P 500 increased 54 points, or 0.97%, to 5,608, and the Nasdaq Composite gained 245 points, or 1.39%, to 17,877.

Futures indicate stocks may struggle to extend an eight-day winning streak that has seen the S&P 500 rally 8.9%, the biggest percentage gain over such a period in more than two years.

Given such a surge, investors may be excused a moment for consolidation, particularly as markets are in somewhat of a catalyst vacuum as earnings season winds down and the week has started with not much in the way of fresh economic data.

Consequently, all eyes remain focused on Friday’s speech by Federal Reserve Chair Jerome Powell, in which he is expected to imply that a gently cooling economy and inflation back below 3% allows for a steady reduction of interest rates, starting next month.

“Investors are pouring back into equities with a renewed sense of ‘full recovery’ confidence, betting big on a ‘Goldilocks’ scenario for the U.S. economy—just the right mix of growth and stability,” says Stephen Innes, managing partner at SPI Asset Management.

“With the central bank on the cusp of what’s almost certainly the beginning of a rate cut cycle—potentially slashing 200 basis points or more—investors are laser-focused on Chair Powell’s upcoming appearance at Jackson Hole…eagerly waiting to see if he’ll give a wink of confirmation to the current market pricing,” Innes adds.