Dow micro e mini futures opened flat today, as energy sector softness offset financial stocks’ strength. Market breadth in micro futures indicates narrowing gains, which could signal potential sector rotation into defensive plays in the futures market. Rising corporate earnings expectations are a bullish backdrop for stocks. According to Bloomberg Intelligence, more than 22% of companies in the S&P 500 provided guidance for their Q3 earnings results that are expected to beat analysts’ expectations, the highest in a year. Also, S&P companies are expected to post +6.9% earnings growth in Q3, up from +6.7% as of the end of May. Rising Federal Debt and Fewer Institutional Buyers Means an Increased Need for Private Credit Nasdaq micro e mini futures broke above the 16,025 mark, triggering algorithmic buy programs. Technical indicators show the MACD crossing higher, suggesting near-term bullish momentum in micro contracts.
