U.S. stock futures were mixed during early trading Tuesday after the major averages closed at records, boosted by strength in infrastructure stocks.
Futures contracts tied to the Dow Jones Industrial Average dipped 75 points, or 0.2%. S&P 500 futures traded in mildly negative territory and Nasdaq 100 futures edged up 0.1%.
Shares of GE rallied after the industrial giant announced it will split into three public companies focusing on aviation, healthcare and energy. The stock rallied more than 7% in premarket trading.
Investors are awaiting the release of the October producer price index, which measures the costs of final-demand manufactured goods. Economists surveyed by Dow Jones are expecting producer prices to have risen 0.6% month over month in October.
All three major averages rose to new highs in Monday’s regular trading session, which marked the S&P 500’s 64th record close of the year.
The S&P 500 added 0.09% and closed above 4,700 for the first time. The Dow gained about 104 points, or 0.29%, posting its 44th record close of the year. The Nasdaq Composite advanced 0.07% to post its 11th straight positive session, the longest daily winning streak since December 2019.
Infrastructure-related stocks were among Monday’s biggest winners after the House passed the spending package on Friday evening. Materials was the top-performing S&P group, rising 1.23%, while the industrials sector closed at a record.
“The passing of the traditional infrastructure bill is a strong positive for the economy and for markets, as it should result in positive ROI [return on investment] for the country,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
“Infrastructure is one of those expenditures which is truly an investment — with an expected positive return on money spent — as opposed to a pure expense, with relatively little chance of getting the money back,” he added.
Strong earnings results have also supported stocks in running to new highs. Through Tuesday morning, 459 companies in the S&P 500 have reported quarterly results, with 81% beating earnings estimates.
“With Q3 earnings season winding down, economic data and the progress in economic re-openings will gain in importance in investors’ focus from here to the end of the year,” noted John Stoltzfus, chief investment strategist at Oppenheimer Asset Management.
Another key inflation reading is on the docket this week with the consumer price index due Wednesday. The consumer price index is also expected to show a 0.6% jump compared to the prior month.