Traders operate on the floor of the New York Stock Exchange (NYSE) on October 12, 2021.
Brendan McDermid | Reuters
US stock futures barely changed Tuesday night as investors waited for a Federal Reserve decision on its throttling plan.
The Dow Jones Industrial Average futures fell 28 points, or 0.07%. S&P 500 and Nasdaq 100 futures were down 0.08% and 0.1%, respectively.
Lyft was up 10.3% in after-hours trading on better-than-expected third-quarter results. Zillow fell 8% after announcing it was closing its home buying and flipping business. Bed Bath & Beyond’s shares rose on the announcement of a partnership with Kroger, but the 80% surge that followed was likely fueled by a short squeeze.
In regular trading, the Dow rose 138.79 points to 36,052.63 points. The S&P 500 was up 0.3% and the Nasdaq Composite was up 0.3%. All three major averages closed with records for the third time in a row. The small cap Russell 2000 rose slightly to close at an all-time high.
Investors are focused on the Federal Reserve, which is expected to announce the end of its bond-buying program on Wednesday after the close of its two-day meeting. They will also watch out for clues as to when the central bank plans to raise rates.
Still, stocks rose Tuesday as companies continued to deliver strong earnings reports. Of the S&P 500 companies that have reported so far this reporting season, 83% have exceeded consensus expectations, according to FactSet. And this despite ongoing interruptions in the supply chain, work challenges, raw material inflation, central bank policy and Covid risk.
“Stocks are like the Energizer Bunny in that they continue to make new highs and show no signs of fatigue,” said Ryan Detrick, chief market strategist at LPL Financial. “We understand all of the concerns out there, but the bottom line is that earnings continue to be better than expected and help keep stocks at current levels.”
These highs make a potential year-end rally more conceivable for investors.
“The primary market trend appears to be higher,” said Keith Lerner, co-chief investment officer at Truist. “In the eight periods since 1950 that stocks were up more than 20% through October, including this year, the S&P 500 was up 100% of the time through year-end, with an average gain of 6.2%. “
Weekly mortgage applications and ADP payroll data will also be published.
CVS and Marriott are expected to report their results before the bell rings on Wednesday. MGM Resorts, Etsy and Electronic Arts will be reporting after the bell.