Stocks May Extend Recent Upward Trend In Early Trading - U.S. Commentary

(RTTNews) - After turning in a strong performance last week, stocks could see some further upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 48 points.

Stocks may continue to benefit from the recent upward momentum for the markets, which has lifted the Dow and the S&P 500 to record highs. The tech-heavy Nasdaq has also reached its best levels since 2000.

Buying interest has recently been generated by renewed optimism that the Federal Reserve is likely to leave its stimulus program intact for the foreseeable future, with dovish comments from Fed Chair nominee Janet Yellen helping to push stocks higher last week.

"While markets heard all they needed to hear from Janet Yellen last week, the other two members of the uber dove troika speak this week," said Peter Boockvar, chief market analyst at the Lindsey Group.

Boockvar noted that New York Fed President William Dudley is due to deliver a speech today at 12:15 pm ET, while Fed Chairman Ben Bernanke is scheduled to speak tomorrow night at 7 pm ET. The minutes of the October Fed meeting are also due to be released on Wednesday.

"Their interpretation of the economic data in the next month will of course be driving the bus towards what they may or may not do in December," Boockvar said. "It's hard to believe that one week before Christmas that we'll get any change."

Not long after the start of trading, the National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of November.

Economists expect the NAHB/Wells Fargo Housing Market Index to come in unchanged compared to the previous month at a reading of 55.

Later this week, trading is likely to be impacted by the release of reports on retail sales, existing home sales, and consumer and producer price inflation.

Among individual stocks, shares of Boeing (BA) may see early strength after the aerospace giant booked $100 billion in orders at the opening of the Dubai Airshow.

Meat processor Tyson Foods (TSN) is also moving higher in pre-market trading after reporting fourth quarter earnings that came in slightly above analyst estimates.

On the other hand, shares of Microsoft (MSFT) may come under pressure after Bank of America/Merrill Lynch downgraded its rating on the software giant to Underperform from Neutral.

Stocks moved mostly higher over the course of the trading day on Friday, extending the upward trend seen over the past few sessions. Buying interest was somewhat subdued, but the Dow and the S&P 500 still managed to reach new record highs.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow climbed 85.48 points or 0.5 percent to 15,961.70, the Nasdaq edged up 13.23 points or 0.3 percent to 3,985.97 and the S&P 500 rose 7.56 points or 0.4 percent to 1,798.18.

For the week, the major averages all posted notable gains. The Dow advanced by 1.3 percent, while the Nasdaq and the S&P 500 jumped by 1.7 percent and 1.6 percent, respectively.