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Dec 9, 2016

U.S. Stock Market Future Indications, by MarketWatch - December 9, 2016: Dow Set Stretch Out Record Run With %th Day of Gains

marketwatch.com

Sara Sjolin
 
The Dow Jones Industrial Average was poised for its fifth straight day of gains Friday as futures for the benchmark rose, though some analysts are warning that a correction may lie ahead.

The S&P 500 index SPX, +0.22% COMP, +0.44%  and Nasdaq Composite, however, looked set to take a breather after Thursday’s rally, when five major U.S. stock benchmarks finished at record levels. That’s the first time in more than 18 years that they have all ended at all-time highs on the same day.
Dow futures YMZ6, +0.14%  tacked on 13 points, or 0.1%, to 19,577. The benchmark clinched its 22nd record close in 2016 in the previous session, after the European Central Bank extended its quantitative easing program and the “Trump rally” continued.
As of Thursday’s close, the Dow was eyeing a 2.3% weekly advance, which would be the largest since the week of the U.S. presidential election.
Futures for the S&P 500 index ESZ6, +0.03%  slipped 1.15 points, or 0.1%, to 2,241.25, while those for the Nasdaq-100 index NQZ6, +0.13%  dropped 2.50 points, or 0.1%, to 4,859.75. Both the S&P 500 SPX, +0.22%  and Nasdaq Composite COMP, +0.44%  ended at all-time highs on Thursday and were on track for weekly jumps of 2.5% and 3.1%, respectively.
Read: This buying panic may last until Dow 20,000
However, analysts have started to ask if the surge in stocks since the election on Nov. 8 is now looking a bit overdone.
See: This top market timer says stocks’ ‘Trump bump’ won’t last much longer
“The Relative Strength Index hints at deepening overbought conditions in the U.S. stock markets, suggesting that the time for a correction could be approaching,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group, in emailed comments.
“Of course it is just a technical indicator, and we have seen that investors have proved to be very eager in stocks over the last couple of days,” she added.
Economic news: It’s a relatively quiet day on the economic calendar. A reading on consumer sentiment for December comes out at 10 a.m. Eastern Time, and it is forecast to have risen to 95.0 from 93.8 in November.
Wholesale inventories for October are also due at 10 a.m. Eastern.
There are no Federal Reserve speakers on tap as the central bank has entered its “blackout” period ahead of its December 13-14 meeting.
Movers: Shares of Restoration Hardware Holdings Inc. RH, +2.77%  plunged 17% ahead of the bell after the home-goods retailer late Thursday lowered its outlook for the fourth quarter on slower holiday sales.
Vail Resorts Inc. MTN, -1.11%  will report earnings before the open on Friday.
Other markets: Oil prices CLF7, +0.77% LCOG7, +0.46%  moved firmly higher as traders looked ahead to Saturday’s meeting between OPEC and non-OPEC oil producers.
Asian markets closed mixed, while European stocks traded mostly higher.
Gold prices GCG7, -0.50%  slipped, and the dollar DXY, +0.29%  traded in right ranges against other major currencies.
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