From the wsj’s “Stock Futures Point to Muted Gains” posted early Tuesday:
U.S. stock futures edged higher Tuesday, suggesting major indexes will resume their recent climb after a slide in technology shares weighed on markets at the start of the week…
Investors broadly expect stocks to rally this year as the rollout of vaccines and fresh government spending help the economy recover from the disruption caused by the pandemic. Still, some are bracing for volatility in the coming months amid risks stemming from high valuations in parts of the stock market, still-elevated coronavirus case rates and political uncertainty following last week’s attack on the Capitol.
In the coming days, money managers will parse quarterly results as earnings season gets under way among U.S. companies. Grocery chain Albertsons is due to report earnings before the bell Tuesday, followed by home builder KB Home after markets close.
“There is an expectation for an earnings recovery compared with last year, which is quite important,” said Maria Municchi, multi-asset portfolio manager at M & G Investments. “The stimulus we have seen is certainly supportive to some of this earnings growth.”
My take: I’m dreading the next eight days.