Wall Street to start on bullish note amid stimulus hopes

Wall Street is set to start in a bullish mood on Monday as traders have an extra spring in their step thanks to hopes about President Biden’s stimulus package.

Just under two hours ahead of the opening bell, the main US stock indices are all seen rising, meaning new all-time highs could be notched up.

Spread-betters IG expect the Dow Jones Industrial Average to start up 126 points, while the S&P 500 is forecast to rise 12.5 points and the Nasdaq is predicted to jump 48 points.

“The reflation trade continues at the start of the new week, on expectations of more US stimulus, ongoing central bank support, and of course hopes that the ongoing COVID vaccine roll outs will reduce infections further and hopefully economies will re-open again in the not-too-distant future,” said market analyst Fawad Razaqzada at ThinkMarkets.

“So, stocks remain on the front-foot with many global indices hitting records or multi-year highs, and Brent Crude Oil has climbed above $60 a barrel for this first time in more than a year on hopes over stronger recovery in demand”, he added.

Five things to watch for on Monday:

• Companies that may be of interest in the earnings diary include video game developer Take-Two Interactive Software Inc (NASDAQ:TTWO), education technology group Chegg Inc (NYSE:CHGG) and investment firm Loews Corp (NYSE:L)
• Meanwhile, shares in board game and toy maker Hasbro Inc (NASDAQ:HAS) will be in focus after the company reported earnings data that saw both profits and revenues beat expectations
• Casino operator Wynn Resorts Ltd (NASDAQ:WYNN) may also be eyed after it announced plans for a public share offering that could be worth just over US$640 million
• Oil prices are also an area of attention after prices of a barrel of Brent crude surpassed US$60 for the first time in over a year
• On the macro front, things are relatively quiet, however US consumer inflation expectations for January may attract some interest

Story by ProactiveInvestors