Stocks look set for a higher open as the dollar slides to begin 2021.
Dow Jones Industrial Average futures have risen 152 points, or 0.5%, while S&P 500 futures have advanced 0.5%, and Nasdaq Composite futures have gained 0.5%. The U.S. Dollar Index has fallen 0.5% to $89.53.
The market is wasting no time heading higher on the first trading day of the new yearâ€”and thatâ€™s despite overhangs that might normally keep a lid on things. On Friday, weâ€™ll get Decemberâ€™s payrolls report, though investors look set to write off the numbers as they look ahead to a vaccinated population. Georgia will hold runoff elections for its two Senate seats on Tuesday, votes that will determine control of the body. Even the formality of counting electoral votes to certify Joe Bidenâ€™s win on Wednesday isnâ€™t going to be as much of a formality as it has been in past years.
â€œPolitically, some Republicans will challenge the election result, but Biden will be certified the winner and the key political event this week remains the Georgia Senate run-off (and it could provide a potential surprise),â€ writes The Sevens Reportâ€™s Tom Essaye.
The falling dollar, however, is as good a reason to buy stocks as any. Itâ€™s good not only for U.S. cyclicals, but also for international stocksâ€”and may be one reason the Europe Stoxx 600 is up 1.5% and the iShares MSCI Emerging Markets ETF (EEM) is up 1.9%. As long as the dollar remains weak, donâ€™t expect that to change.
C3.ai (AI) has fallen 2% as Wall Street analysts began coverage of the artificial-intelligence company. JPMorgan initiated C3 at Underperform.
Under Armour (UAA) has advanced 1.6% after getting upgraded to Buy from Hold at Pivotal Research.
Boeing (BA) has fallen 0.9% after getting cut to Underperform from Market Perform at Bernstein.
Write to Ben Levisohn at Ben.Levisohn@barrons.com