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Traders work on the floor of the New York Stock Exchange (NYSE) on October 20, 2023 in New York City.
Spencer Platt | Getty Images
Stock futures ticked higher on Sunday night as traders looked ahead to the release of corporate earnings from tech industry behemoths.
Futures tied to the Dow Jones Industrial Average rose 59 points, or 0.18%. S&P 500 futures and Nasdaq 100 futures climbed 0.23% and 0.15%, respectively.
The moves follow a tough week for stocks, as concerns over higher interest rates sent all three major indexes into negative territory. The S&P 500 ended the week 2.4% lower, notching its first losing week in three. The Dow Jones Industrial Average shed 1.6%, while the Nasdaq Composite slumped 3.2% to register its second losing week in a row.
The yield on the benchmark 10-year U.S. Treasury climbed above the key 5% level on Thursday for the first time since July 2007. The move came after Federal Reserve Chairman Jerome Powell signaled hawkish messaging in a speech at the Economic Club of New York.
Earnings season ramps up this week, with a slew of big tech titans slated to report. Investors will anticipate results from Alphabet, Amazon, Meta and Microsoft to provide key information for the stock market.
"We're hopefully going to see some continued positive strength there on the economy and what they see going forward," said Ryan Detrick, chief market strategist at Carson Group. "The headlines are scary, for sure. But the fundamentals to us are pretty strong. We're still seeing earnings season that's going to come in better than expected."
Traders are also bracing for key economic data to be released this week, including Thursday's third-quarter advance report for the U.S. gross domestic product. The personal consumption expenditure, an inflation yardstick, is due for release on Friday. Investors are worried that if these reports come out stronger than expected, yet another rate hike may not be completely off the table this year.
30% of S&P 500 companies are due to report earnings this week
Investors are gearing up for the busiest week of earnings season, with 30% of companies in the S&P 500 slated to report.
Tech titans Alphabet and Microsoft are slated to release earnings after the bell on Tuesday. Meta is due to report on Wednesday, and Amazon on Thursday.
Three key industrial companies are also reporting, starting with 3M and General Electric on Tuesday. Boeing is set to follow on Wednesday before the bell.
With General Motors reporting on Tuesday and Ford on Thursday, investors will also gauge the economic impact of the United Auto Worker strikes.
— Lisa Kailai Han, Robert Hum
Stock futures open higher
Gulf markets fall amid concerns of persistent conflict in region, U.S. rate hikes
Stock markets in the Gulf declined on Sunday amid concerns about an escalation in the Israel-Hamas war and additional interest rate hikes from the U.S. Federal Reserve.
- Saudi Arabia's benchmark index was down for a third consecutive session, ending 1.5% lower, as of October 22. Al Rajhi Bank, a Saudi Arabian bank which is the world's largest Islamic bank by capital, lost 2.1%.
- The Qatari index continued its five-day streak of losses, ending 0.9% lower, with Industries Qatar dropping 2.2% and Qatar Navigation sliding 3%. The Qatar National Bank declined by 2.1%.
- The Dubai Financial Market General Index, Dubai's main share index, retreated 1.5%.
- Outside the Gulf, Egypt's blue-chip index gained 2.4%.
Monetary policy in the Gulf Cooperation Council is usually guided by the Federal Reserve's policies as most regional currencies are pegged to the U.S. dollar. The Gulf Cooperation Council, or GCC, has six members: Qatar, Bahrain, Oman, Kuwait, Saudi Arabia and the United Arab Emirates.
— Pia Singh
English (US)