Stock futures are little changed after major averages rebound to start the week: Live updates

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A trader works on the floor of the New York Stock Exchange on Oct. 20, 2023.

Michael Nagle | Bloomberg | Getty Images

U.S. stock futures were flat Monday night after the major averages climbed in a relief rally.

S&P 500 futures and Nasdaq 100 futures each inched lower by 0.04%. Futures tied to the Dow Jones Industrial Average ticked up just 7 points, or 0.02%.

During Monday's trading session, the S&P 500 managed to pull out of correction territory and close 1.2% higher for its best day since late August. The Nasdaq Composite added about 1.2%, while the Dow jumped approximately 1.6% in its best day since early June.

"I don't quite trust [Monday's rally] because I do think some of the fundamentals are starting to change," Anastasia Amoroso, iCapital chief investment strategist, told CNBC's "Closing Bell: Overtime" on Monday. However, "coming into this week, we did hit some oversold levels," she added. Corporate buybacks are likely to return as earnings season rolls on, she added, which could further justify a case for a bounce back.

The major averages remain on pace to end the month in the red. The Dow and the S&P 500 are down 1.7% and 2.8% in October, respectively, in their third consecutive negative month. This marks the first three-month losing streak for both indexes since March 2020. The tech-heavy Nasdaq has declined more than 3% month to date, also on pace for its third negative month in a row.

Wall Street is also keeping a close eye on the Fed's next decision on interest rates this Wednesday. Fed funds futures pricing suggests a roughly 98% probability that the central bank will keep rates at current levels, according to the CME FedWatch Tool.

"I actually expect that that might be a bullish development, because Fed Chair Powell sort of alluded to the case that the fact that Treasury yields rose across the curve means they might be done tightening," said Amoroso.

Investors are also hoping that October's payrolls report, which will be released Friday, will indicate some slowdown in the labor market.

Traders will also be watching for earnings results Tuesday from Caterpillar, Pfizer, Caesars Entertainment and chipmaker Advanced Micro Devices. Tech giant Apple is scheduled to release its quarterly earnings Thursday after the bell, in one of the most widely anticipated reports this earnings season.

Apollo Global and KKR still on track to enter S&P 500, eventually, Barclays says

Apollo Global Management and KKR & Co. are both still on track to eventually join the S&P 500 Index, according to a Barclays report to clients out Monday, although the immediate outlook may be diminished by the effect of higher interest rates on both companies' GAAP-reported earnings.

After Blackstone was admitted to the S&P 500 in September, "the index inclusion narrative has become increasingly front and center" for alternative asset managers, analyst Benjamin Budish said in the note. The problem for Apollo and KKR, however, is that S&P demands earnings measured by Generally Accepted Accounting Principles in the most recent quarter, "and in aggregate over the four preceding quarters."

But with interest rates having climbed in the third quarter, "this could result in unrealized losses on APO's/KKR's fixed income investments (largely related to their insurance businesses)," Barclays argued, noting that GAAP earnings for both had been negative in prior quarters that saw 10-year Treasury yields rise by similar magnitudes.

— Scott Schnipper, Michael Bloom

Stocks making the biggest moves in extended trading

Check out the companies making headlines after hours.

Arista Networks — The cloud networking solutions company added 6% Monday after the bell. Arista Networks reported $1.83 in earnings per share, excluding items, on $1.51 billion in revenue. Analysts polled by FactSet had estimated $1.58 in earnings per share on $1.48 billion in revenue.

Lattice Semiconductor — The maker of low-power programmable chips dropped about 16% in late trading. Lattice's fourth-quarter revenue forecast of $166 million to $186 million fell short of analysts' consensus estimate of $195.7 million, according to FactSet's StreetAccount.

Wolfspeed — Shares of the chipmaker jumped more than 11% following its fiscal first-quarter results. The company posted a loss of 53 cents per share, while analysts called for 67 cents per share, per LSEG, formerly known as Refinitiv. Revenue fell short of estimates, coming in at $197 million, while analysts forecast $208 million.

The full list can be found here.

— Hakyung Kim