Traders work on the floor of the New York Stock Exchange during morning trading on December 13, 2023 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures wavered on Tuesday after the Dow Jones Industrial Average closed at a record high.
Futures linked to the 30-stock average slipped by 24 points, or about 0.1%. S&P 500 futures and Nasdaq 100 futures gained 0.2% each.
Bank of America rose more than 1% before the bell after earnings came in ahead of expectations. It’s the latest household name to post quarterly financial results as the new reporting season kicks into gear.
Those moves follow a winning day on Wall Street that pushed the Dow to all-time highs. Investors bet that the unsuccessful assassination attempt on former President Donald Trump would be a tailwind for the Republican presidential candidate and his party in November’s election. A victory for the GOP at the polls could pave the way for favorable tax and fiscal policies for investors.
The market also continued its rotation into small-cap stocks, with the Russell 2000 rising 1.8% during Monday’s session. Tom Lee, the head of research at Fundstrat Global Advisors, thinks that last week’s big gains for the small-cap index marks just the beginning of a longer rotation. The Russell 2000 posted a 6% gain last week.
“That rally that started last week for small caps is going to be larger than the October to December rally of last year that was over eight weeks and almost a 30% gain for the Russell 2000,” he said on CNBC’s “Closing Bell: Overtime.”
Lee said that small-cap stocks look comparatively more oversold, with valuations even lower this time around.
“We think that this move could be something like 10 weeks and as much as 40%,” he added, noting that the monthly decline in June’s consumer price index reading is giving small-cap stocks “the green light” to rally.
Investors will watch for economic data on topics such as retail sales, import prices and the housing market due throughout the morning.