Stock futures inched higher in overnight trading Sunday ahead of a busy week for corporate earnings.
Futures tied to the Dow Jones Industrial Average added 0.7%, while S&P 500 futures and Nasdaq-100 futures gained 0.09% each.
Stocks are coming off a mixed session and week. The S&P 500 advanced 0.45% for its second consecutive positive week, while the Dow Jones Industrial Average gained 0.79%. The Nasdaq Composite lost about 0.2% for the week and fell 1.23% during Friday’s session, while the S&P dipped 0.5% and the Dow inched up 0.12%.
Oil prices spiked more than 5% during Friday’s session and posted their best day since April as the conflict between Israel and Hamas fuelled some fears related to oil production in the region.
Meanwhile, Wall Street assessed a slew report from major financial firms, with JPMorgan Chase and Wells Fargo gaining 1.5% and 3%, respectively.
Despite these mostly positive results, some on Wall Street are bracing for more volatility into yearend as yields and oil prices rise, inflation remains sticky, and conflict ensues in the Middle East, said Eric Johnston, Cantor Fitzgerald’s head of equity derivatives and cross-asset.
“This Mideast situation is kind of showing that when you own equities, you are taking risks,” he told CNBC’s “Closing Bell” on Friday. “As a result, you need to have good upside returns in order to justify that risk, because there are things that come out of nowhere, like this situation.”
Over the weekend, Israel’s military continued urging residents to evacuate northern Gaza amid a widely anticipated ground invasion. Meanwhile, U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) said Sunday that the Senate would work to quickly push through a military aid package to assist Israel as it battles Hamas.
Earnings season heats up this week with 11% of the S&P 500 slated to report results. Some notable names on deck include Johnson & Johnson, Bank of America, Netflix and Tesla
On the economic front, Wall Street awaits the Empire State Index for October due out Monday.
Stock futures opened slightly higher on Sunday evening as Wall Street readied for a busy week of earnings. – CNBC
