Stock Futures Rise Slightly as Virtual Democratic Convention Starts

Stock futures were rising slightly on Monday evening, as the virtual Democratic National Convention started.

The S&P 500 index closed just short of its record, set on Feb. 19, at 3386.15. The Covid-19 selloff has been all but erased, though concerns about the underlying economic impacts of the pandemic remain.

“There was apparently no special news item to account for the movement in the NASDAQ and the listed market didn’t move all that much,” Todd Market Forecast’s Stephen Todd wrote in a note on Monday. “It was basically a nothing day.”

He wrote that the pattern of higher highs and higher lows for the S&P 500 index continues, adding that the index is “overbought, but that can last for a while.”

Gorilla Trades strategist Ken Berman wrote in a note that though Covid-19 numbers continue to improve, the global situation “remains gloomy, especially with the severity of the Indian outbreak and the European deterioration weighing on risk assets.”

“This duality is likely behind the divergence among the key sectors, but the domestic economic numbers mean that U.S. stocks will likely emerge stronger from the current consolidation,” Berman added. “That said, investors should continue to monitor the European developments, as another round of lockdowns could halt the global economic recovery.”

Investors will likely be tuned in Monday’s virtual Democratic convention, which starts at 9 p.m. Eastern time. Speakers include Sens. Bernie Sanders, Amy Klobuchar, Catherine Cortez Masto, and Doug Jones; Govs. Andrew Cuomo and Gretchen Whitmer; Reps. Jim Clyburn, Bennie Thompson, and Gwen Moore. Former First Lady Michelle Obama will also speak, making the case for Biden’s character and ability to lead amid the pandemic.

Still, as Berman notes, housing market indicators will be in focus on Tuesday. The U.S. Census Bureau’s report on new residential construction data for July is due on Tuesday. Economists expect housing starts at a seasonally adjusted annual rate of 1.25 million units. June saw an annual rate of 1.186 million. #S&P500##NAS100##StockMarket#

Reprinted from Marketwatch，the copyright all reserved by the original author.