S&P 500 futures steady after index tops 5,000 for the first time

See: S&P 500 reaches 5,000 for first time. Here’s what it means for the market.

What’s driving markets

Two-thirds through fourth-quarter earnings season, 76% of companies have beaten bottom-line estimates, analysts at Jefferies said.

“Though we spend plenty of time thinking, analyzing and charting indicators of sentiment, flows, performance and economic health, the reality is that earnings revisions really do the best job of divining what direction stocks are likely to go in. And that leads us to flag that it’s probably fundamentals, more than anything else, that are perpetuating the rally that started late last year,” said Andrew Greenbaum, senior vice president of equity product management at Jefferies.

Tuesday’s release of consumer-price-index data could derail those fundamentals.

“The Fed continues to look forward to rate cuts to offset an expected tightening of financial conditions as inflation returns to 2%, but the timing and magnitude remains elusive given the strength of the economy and lingering uncertainty over the path of inflation,” said Tim Duy, chief U.S. economist at SGH Macro Advisors.

Read: What investors stashing $6.5 trillion away in cash should do as Fed pushes back on rate-cut expectations

Companies in focus

• Diamondback Energy Inc.
  FANG,
  -1.13%
  and closely held Endeavor Energy Resources LP on Monday confirmed reports they’re combining in a deal valued at about $26 billion including debt, that marks the latest big oil merger. Diamondback shares were up more than 3% in premarket trade.