Stock Futures Inch Higher as Earnings Season Kicks Off
Traders on the New York Stock Exchange eagerly await the start of a busy week for corporate earnings as stock futures inched higher in overnight trading on Sunday. Futures tied to the Dow Jones Industrial Average added 0.1%, while S&P 500 futures and Nasdaq-100 futures gained 0.12% and 0.16% respectively.
Last week saw mixed results for stocks, with the S&P 500 advancing 0.45% for its second consecutive positive week, while the Dow Jones Industrial Average gained 0.79%. The Nasdaq Composite, however, lost about 0.2% for the week and fell 1.23% during Friday’s session. The S&P dipped 0.5%, and the Dow inched up 0.12%.
Amidst market volatility, oil prices saw a significant spike of more than 5% during Friday’s session, resulting in their best day since April. The conflict between Israel and Hamas fueled fears related to oil production in the region, leading to the surge.
While major financial firms such as JPMorgan Chase and Wells Fargo reported impressive gains of 1.5% and 3% respectively, some experts on Wall Street are preparing for more volatility in the markets. Eric Johnston, Cantor Fitzgerald’s head of equity derivatives and cross-asset, highlighted rising yields and oil prices, persistent inflation, and ongoing conflict in the Middle East as factors that may contribute to increased market uncertainty.
“This Mideast situation is kind of showing that when you own equities, you are taking risks,” Johnston told CNBC’s “Closing Bell” on Friday. “As a result, you need to have good upside returns in order to justify that risk because there are things that come out of nowhere, like this situation.”
Over the weekend, Israel’s military continued to urge residents to evacuate northern Gaza in anticipation of a ground invasion. Additionally, U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) announced plans to swiftly push through a military aid package to support Israel in its battle against Hamas.
As the new week begins, investors are closely monitoring earnings reports, with 11% of the S&P 500 scheduled to release their results. Notable names on the list include Johnson & Johnson, Bank of America, Netflix, and Tesla. Charles Schwab will report their results before the opening bell on Monday.
On the economic front, Wall Street anxiously awaits the Empire State Index for October, set to be released on Monday. With earnings season in full swing and a range of geopolitical and economic factors at play, market participants are bracing themselves for another week of potential volatility.