Stock Futures Dip as S&P 500 Hits Another Record High
Stock futures saw a modest decline on Monday after the S&P 500 closed above 5000 for the first time and set a new record high on Friday. The index, along with the Dow Jones Industrial Average and the Nasdaq Composite, has experienced strong gains in recent weeks. Here are some notable stocks to watch on Monday.
Diamondback Energy is reportedly considering a merger with Permian rival Endeavor Energy Resources in a deal that could create an oil-and-gas giant worth over $50 billion. The merger, if finalized, would value Endeavor at around $25 billion, with Diamondback stockholders owning the majority of the combined company. Shares in Diamondback rose 0.6% in premarket trading.
Microsoft recently surpassed Apple to become the company with the highest market capitalization ever, closing at $3.125 trillion on Friday. This milestone surpassed Apple’s previous record of $3.09 trillion set in July 2023. In premarket trading, Microsoft was down 0.2% while Apple saw a 0.3% increase.
Amazon.com slipped 0.2% in premarket trading, reaching $174.10. However, the e-commerce giant saw a 2.7% increase on Friday, ending the day at $174.45, its highest closing level since December 9, 2021. Founder Jeff Bezos also made headlines after selling $2 billion worth of Amazon shares, his first sale in over two years.
Several companies are set to release earnings reports on Monday, including Arista Networks, Monday.com, Cadence Design Systems, and Waste Management. Later in the week, notable companies such as Coca-Cola, Shopify, Airbnb, Cisco Systems, Occidental Petroleum, Kraft Heinz, Applied Materials, Deere, DoorDash, Coinbase Global, and DraftKings are also expected to report.
Analyst comment
Positive news:
1. S&P 500 hitting another record high.
2. Diamondback Energy considering a merger with Permian rival Endeavor Energy Resources.
3. Microsoft surpassing Apple to become the company with the highest market capitalization ever.
4. Amazon.com seeing a 2.7% increase in its stock price.
5. Several companies releasing earnings reports.
Neutral news:
1. Stock futures seeing a modest decline.
As an analyst, the market is expected to remain strong and potentially continue its upward trend, with potential mergers and positive earnings reports contributing to investor confidence. However, caution should be exercised as slight fluctuations in stock prices are seen.
