Stock index futures were little changed on Monday, as the markets entered the second half of the year after an encouraging H1.
S&P 500 futures (SPX) +0.1%, Dow futures (INDU) +0.1%, and Nasdaq 100 futures (US100:IND) were unchanged.
The 10-year Treasury yield (US10Y) was unchanged at 4.42%. The 2-year yield (US2Y) was flat at 4.77%. See how Treasury yields have done across the curve at the Seeking Alpha bond page.
U.S. stocks on Friday were not able to hold on to new intraday highs, steadily shedding their gains to eventually end lower. However, Wall Street’s benchmark S&P 500 (SP500) closed out the first six months of 2024 with a 14% advance.
The markets had initially rallied on Friday after a core measure of a key inflation gauge logged its lowest Y/Y increase in over three years.
“On the plus side, Q2 saw equities continue to advance, and the S&P 500 hit many more fresh new highs thanks to further gains for the Magnificent 7. But the gains remained narrow, with the equal-weighted S&P 500 actually losing ground in Q2,” Deutsche Bank’s Jim Reid said.
In the holiday-shortened week, traders will be eyeing the June jobs report, which is due on Friday.
“In terms of this week, it will be quite a busy one considering it is a U.S. holiday. Thursday is Independence Day, which means Friday will likely see a skeleton staffing for the latest employment report with the all-important payrolls number,” Reid added.
On the economic front today, the June PMI manufacturing index and the ISM manufacturing index reports are due during market hours. The former is expected to rise to 51.7, while the latter is anticipated to come in at 49.2.
“We look for another sub-50 ISM manufacturing index in June; tight monetary policy is preventing a revival,” Pantheon Macroeconomics said.
“Clear signs that a resurgence in U.S. manufacturing is now underway, however, are scant,” they added.
The May construction spending data are also due today, and are expected to see a monthly rise of 0.3%.
