World News

Dow futures did not change a lot earlier than a giant week of earnings


US stock index futures were roughly flat during Sunday overnight trading after major averages posted their best week in months as the earnings season got off to a stronger-than-expected start.

Futures contracts linked to the Dow Jones Industrial Average lost just 23 points. S&P 500 futures lost 0.1% while Nasdaq 100 futures lost 0.2%.

The big averages come from a successful week. The Dow rose 382 points on Friday to end the week up 1.58% for its best week since June. The S&P 500 rose 1.82% last week for its best week since July, while the Nasdaq Composite had its best week since late August, with the tech-heavy index gaining 2.18%.

In addition to Goldman Sachs’s better-than-expected gains on Friday, positive economic data also boosted stocks. Retail sales rose 0.7% in September, the Census Bureau said on Friday, while economists polled by Dow Jones were expecting a 0.2% decline.

“Wall Street expected spending to slow down, but it turned out not to mess with US consumers,” said Edward Moya, senior market analyst at Oanda. “Consecutive months of better-than-expected retail sales data show that the consumer is looking good on the way into the holiday season,” he added.

The winning season is now well underway, and a number of big names will be reporting in the coming week, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon, and IBM are among the other names on deck for the week.

So far, 41 S&P 500 components have reported third quarter results, with 80% exceeding EPS expectations, according to data from FactSet. Taking into account the companies already announced and estimates for the rest, earnings growth will be 30% in the third quarter, the third highest quarterly growth rate for S&P 500 companies since 2010, according to FactSet.

Strong results from the first week of earnings, including from the biggest banks, have put key averages within striking distance of their all-time highs. The Dow is less than 1% from its record high, while the S&P 500 and Nasdaq Composite are 1.6% and 3.3% below their highs, respectively.

With the reporting season in full swing, investors will be on the lookout for company comments on supply chain bottlenecks and inflation, among other things.

“Growth in 2022 is likely to be fueled by the delayed effects of monetary stimulus, the delayed effects of rising consumer wealth, reopening and inventory building,” Evercore ISI chairman Ed Hyman wrote in a statement to customers on Sunday. “Problems in the supply chain are likely to subside, and unmet demand from this year will likely be met next year. Wages are likely to rise and consumer incomes will increase, ”he added.

Bitcoin pulled back from its recent high, but stayed above $ 60,000 on Sunday, according to Coin Metrics, as the first exchange-traded Bitcoin futures fund starts trading this week.

Bitcoin surged higher on Friday in anticipation that such a listing might come. The world’s largest cryptocurrency topped $ 60,000 for the first time since April last week, trading as high as $ 62,307.

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