Stock futures exhibited minimal movement in overnight trading on Sunday, as investors geared up to evaluate the impact of upcoming key corporate earnings on the market’s performance.
Futures for the Dow Jones Industrial Average hovered near the flatline, while S&P 500 futures showed no significant change. In contrast, Nasdaq-100 futures slipped by 0.1%. Notably, the bond market remains closed in observance of Columbus Day, but stock trading will continue as usual.
JPMorgan Chase and Wells Fargo have set a positive tone for the third-quarter earnings season, reporting robust results that led to a rally in their stock prices. These early signs of a recovery in banking profits contributed to the broader market reaching all-time highs at the end of last week. The S&P 500 marked a significant milestone by closing above 5,800 for the first time, while the blue-chip Dow also achieved a record high.
Looking ahead, Bank of America, Goldman Sachs, and Johnson & Johnson are scheduled to report their latest earnings on Tuesday before the market opens. Morgan Stanley and United Airlines will follow with their results on Wednesday, while Walgreens Boots Alliance, Netflix, and Procter & Gamble are also set to announce earnings later in the week.
Despite the market’s upward momentum, investors remain cautious amid a closely contested presidential election approaching in three weeks, rising Treasury yields, uncertainty regarding the pace of Federal Reserve policy easing, and escalating geopolitical tensions in the Middle East.
Nevertheless, Adam Crisafulli, founder of Vital Knowledge, emphasized in a note on Sunday that the “Big 4 macro tailwinds” — stimulus, resilient growth, disinflation, and healthy corporate performance — continue to drive the market. He suggested these factors are robust enough to counterbalance high valuations and geopolitical risks, helping to maintain the S&P 500’s upward trajectory.
Year-to-date, the S&P 500 has surged nearly 22%, excluding reinvested dividends. In tandem, Treasury yields have also risen, with the benchmark 10-year note yield, which influences everything from mortgages to auto loans, surpassing 4.1% last week.
On the economic data front, key reports on September retail sales and industrial production will be released on Thursday, followed by September housing starts and building permits on Friday.
