US stock index futures were little changed on Tuesday after the S&P 500 and Nasdaq Composite closed at record highs on Monday.
Futures contracts linked to the Dow Jones Industrial Average were 41 points higher. S&P 500 futures were unchanged and Nasdaq 100 futures traded down 0.1%.
Morgan Stanley shares rose 3% in pre-trading hours after the bank announced it would double its quarterly dividend. The bank also announced a $ 12 billion share buyback program. The announcement follows last week’s Federal Reserve stress tests that all 23 major banks passed.
Wells Fargo announced it would double its dividend to 20 cents per share, pending board approval, and announced a $ 18 billion buyback plan. Bank of America, Goldman Sachs and JPMorgan also announced dividend increases.
Boeing shares rose nearly 1% in pre-market trading after United announced it would buy 200 Max planes.
Shares climbed to new highs during Monday’s regular trading amid the strength of big tech. The S&P 500 rose 0.23% to hit its third record high in a row. The Nasdaq was up nearly 1%, posting its fifth positive session in the last six, and also closing at a new high. However, the Dow lost 151 points due to a withdrawal from Boeing and Chevron, among others.
With the market entering the final trading days of June and the second quarter, the S&P 500 is well on its way to posting profits for the fifth straight month. The Nasdaq is approaching its seventh positive month in the past eight months. However, the Dow is in the red for the month and is well on its way to a four month winning streak.
The S&P 500 is up 14% and the Dow and Nasdaq are up 12% so far for 2021.
“The markets have got off to a good start this year,” said Ryan Detrick, chief market strategist at LPL Financial. “Most of those gains came early in the year, however, and many stocks have stagnated in recent months,” he added. Detrick believes investors should overweight stocks versus bonds, but noted some market concerns, including increased valuations.
Growth stocks continued to outperform Monday, with the Russell 1000 growth metric rising nearly 1% while its value counterpart closed in the red. The value trade outperformed for much of the year, but lately investors have shifted back to growth-oriented areas of the market. These stocks were up 6% in June while their value was down more than 1%.
“The breakout to new highs on Growth was the catalyst to propel the S&P 500 to new highs,” noted JC O’Hara, chief marketing engineer at MKM Partners. “We see the situation where Growth could continue to outperform Value in the coming weeks,” he said based on technical analysis.
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