Stock futures ticked up slightly as late trading kicked off, with stocks steadying after another choppy session earlier on Monday.
Big tech stocks were mixed in overnight trading after outperforming during the regular session, with both the Nasdaq Composite and Nasdaq 100 ending at record high levels. Each of Netflix, Apple, Microsoft, Amazon and Facebook hit record closing, along with Zoom Video Communications, Nvidia and PayPal.
Apple’s record closing high coincided with the company’s annual Worldwide Developers Conference (WWDC), during which the iPhone-maker announced it would be pivoting away from its 15-year partnership with Intel to make its own processors in its Mac devices. The company also announced during its video-streamed conference a suite of new upgrades to its operating systems for iPhone, Mac, iPad and Apple Watch.
Travel and leisure stocks extended declines in late trading as coronavirus cases rose further in some geographies, stoking fears that reopening processes would get crimped. Texas hospitalizations rose by a record based on Monday’s counts, and Governor Greg Abbott said the outbreak was growing at an “unacceptable rate” and warned he would tighten restrictions on social distancing if the outbreak escalates further. Overall cases in Florida rose again Monday to top 100,000.
“This reopening process, it’s pretty important, and we need to see some consumer confidence building because if all of us are sitting in our homes in September or October because we think we’re going to catch the virus, the equity market is not going to like that,” Scott Wren, Wells Fargo Investment Institute senior global equity strategist, told Yahoo Finance’s The Ticker. “We think the bulk of this rally is over for the year. We think we’re going to see a bunch of range trading really between now and the end of the year, finishing a little bit higher than this.”
“To get there and to sustain these kinds of levels you need to see good medical news, you need to see some good economic news too, or at least better than expected economic news,” he added.
Other strategists also anticipated just modest more upside for the S&P 500. Jonathan Golub, Credit Suisse chief equity strategist, on Monday raised his year-end price target for the S&P 500 to 3,200, from the 2,700 the firm saw previously, to represent a 2.6% gain from Monday’s closing prices.
6:04 p.m. ET Monday: Stock futures edge higher in late trading
Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:04 p.m. ET:
S&P 500 futures (ES=F): 3,114.5, up 3.75 points or 0.12%
Dow futures (YM=F): 25,978.00, up 25 points, or 0.1%
Nasdaq futures (NQ=F): 10,131.5, up 6.75 points, or 0.07%
Find live stock market quotes and the latest business and finance news