US stock futures were lower during Monday's overnight trading after major averages closed at record highs, bolstered by strength in infrastructure stocks.
Futures contracts pegged to the Dow Jones Industrial Average fell about 100 points. S&P 500 futures and Nasdaq 100 futures both traded in negative territory.
During regular trading, all three major averages rose to new highs. The Dow gained around 104 points, or 0.29%, marking its 44th record close of the year. The S&P 500 was up 0.09% to close above 4,700 for the first time. The move brought the broad stock index to its 64th record close in 2021. The Nasdaq Composite rose 0.07% to post its 11th consecutive positive price, the longest daily winning streak since December 2019. Record close in 2021.
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Infrastructure-related stocks were among the biggest winners on Monday after House passed the spending package on Friday night. Basic materials were the top performing S&P group with an increase of 1.23%, while the industrial sector closed with a record close.
"The passage of the traditional infrastructure bill is a big plus for the economy and markets as it should result in a positive return on investment [ROI] for the country," said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance.
"Infrastructure is one of those expenses that is truly an investment – with an expected positive return on the money spent – as opposed to just spending it, with relatively little chance of getting the money back," he added.
Strong earnings results have also helped stocks hit new highs. As of Monday morning, 445 S&P 500 components had reported quarterly results, with 81% beating earnings estimates. In terms of revenue, 76% of companies exceeded expectations.
Most of the index may have reported, but there are still some widely watched reports on deck. D. R. Horton will be reporting ahead of Tuesday's opening, while Wynn Resorts and Coinbase will provide updates when the market closes.
"With the end of the reporting season in the third quarter, economic data and the progress made in the economic reopening from here through to the end of the year will become more important in the focus of investors," said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management.
Key inflation data will be released this week, with the producer price index being read on Tuesday, followed by the consumer price index on Wednesday.
Economists polled by Dow Jones expect producer prices to have risen by 0.6% in October compared to the previous month. The consumer price index is also expected to increase by 0.6% compared to the previous month.