U.S. stock futures showed minimal changes on Tuesday morning following the historic milestone of the Dow Jones Industrial Average surpassing 38,000 for the first time. Dow futures experienced a slight decline of 17 points, equivalent to 0.04%, while S&P 500 futures saw a modest rise of 0.03%, and Nasdaq 100 futures gained 0.12%.
During extended trading, United Airlines witnessed a notable surge of over 6% after reporting robust fourth-quarter results. However, the airline anticipates a first-quarter loss due to the grounding of Boeing 737 Max 9 airplanes, the same model involved in the recent Alaska Airlines emergency. United is expected to address questions related to the grounding and potential compensation from Boeing during its Tuesday earnings call.
In response to United’s positive performance, shares of other airline operators also saw increases. American Airlines and Southwest Airlines each recorded gains of approximately 3%, while Alaska Air Group and Delta Air Lines experienced rises of around 2%.
Monday marked a significant trading session for major averages. The Dow Jones Industrial Average, comprising 30 stocks, surged over 100 points, or 0.4%, achieving a new record and closing above 38,000 for the first time. The S&P 500 also reached a new all-time high, rising by 0.2%, while the Nasdaq Composite gained 0.3%.
The ongoing bull market momentum in the S&P 500, reaching new intraday and closing highs, has contributed to the positive market sentiment. However, investors are cautiously evaluating the sustainability of these gains, especially as the recent rally has been concentrated in tech stocks like Nvidia. In contrast, broader market participation has been lackluster, with the small-cap Russell 2000 experiencing a decline of 2% this month.
Cheryl Young, a private advisor at the Rockefeller Global Family Office, expressed caution about the current market conditions, stating, “The market is priced to perfection right now, I mean, we just hit all-time highs today. So, any kind of shocks could cause some pretty big pullbacks here. So, I still love most of these Magnificent Seven names, but I’m adding protection right now.”
The week continues with corporate earnings releases. On Tuesday, Johnson & Johnson, Procter & Gamble, and Lockheed Martin are set to report before the market opens, while Netflix will release its results after the closing bell.
