Stock futures rise after their best week since June

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Traders on the NYSE trading floor, October 21, 2022.

Source: NYSE

US stock futures rose Sunday evening after all three major averages recorded their best week since June near Friday’s close.

Futures linked to the Dow Jones Industrial Average gained 222 points, or 0.71%. S&P 500 futures and Nasdaq 100 futures were up 0.88% and 1.00% respectively.

The moves come after another volatile week for equities as the earnings season warms up for the third quarter. The Dow gained more than 748 points on Friday, or 2.47%. The S&P 500 and Nasdaq Composite rose 2.37% and 2.31% respectively. That contributed to gains from earlier in the week. The S&P 500 and Dow gained 4.7% and 4.9% respectively, while the Nasdaq rose 5.2%.

So far, earnings reports have shown mixed results for stocks. On Friday, banking stocks Goldman Sachs and JPMorgan Chase gained more than 4% after reporting results. But not all results were solid – Snap lost 28% after reporting lost revenue.

Shares also rose Friday, despite bond yields rallying higher – the 10-year US Treasury hit its highest level since 2008 amid mixed corporate earnings. Bond returns are inverse to price.

“The stock market is trying to bottom out to reach the latter part of the bear market,” David Donabedian, chief investment officer of CIBC Private Wealth US, said in a note Friday. “It feels like a two-way market right now. There is a tug-of-war between the skeptics and those who think it’s time to own stocks.”

There are more major earnings reports on deck in the coming week, including tech giants like Apple, Alphabet, Amazon and Microsoft. Wall Street will also be watching for more inflation data – October’s manufacturing and services purchasing manager’s indexes will be released on Monday.

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