U.S. stock futures show Wall Street holding most of the rally from the start of the week as investors display less anxiety about geopolitical risk while anticipating a supportive third quarter earnings season.
How are stock-index futures trading
-
S&P 500 futures
ES00,
-0.24%
dipped 4 points, or 0.1%, to 4397 -
Dow Jones Industrial Average futures
YM00,
-0.24%
fell 31 points, or 0.1%, to 34103 -
Nasdaq 100 futures
NQ00,
-0.24%
eased 6 points, or less than 0.1%, to 15283
On Monday, the Dow Jones Industrial Average
DJIA
rose 314 points, or 0.93%, to 33985, the S&P 500
SPX
increased 46 points, or 1.06%, to 4374, and the Nasdaq Composite
COMP
gained 161 points, or 1.2%, to 13568.
What’s driving markets
Hopes that the nascent third-quarter corporate earnings season will boost investor sentiment were helping S&P 500 futures hold the majority of previous session’s 1.1% gain.
After results from JPMorgan Chase
JPM,
Citigroup
C,
and Wells Fargo
WFC,
were mostly well-received by traders on Friday, it is the turn of their peers Goldman Sachs
GS,
Bank of America
BAC,
and BNY Mellon
BK,
to release numbers before Tuesday’s opening bell on Wall Street.
Johnson & Johnson
JNJ,
and Lockheed Martin
LMT,
will also publish results in the morning, while Omnicom
OMC,
and Interactive Brokers
IBKR,
will release reports after the closing bell.
“Investor sentiment is being driven by hopes of a largely positive U.S. earnings season, so far, continuing,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
About 10% of the S&P 500 is due to report this week, and the majority of those who have already done so have beaten expectations on both earnings and revenues, according to Richard Hunter, head of markets at Interactive Investor.
“Indeed, since the season began in earnest on Friday, estimates for earnings on the whole have been lifted to a likely annual increase of 2.2% from a previous 1.3%,” Hunter added.
Meanwhile, news that U.S. President Joe Biden will visit Israel and neighboring countries in coming days has helped calm nerves that the Israel-Hamas conflict will cause a greater conflagration in the region.
“The recent risk-off sentiment that had cast a shadow over the markets seems to be easing, partly due to extensive shuttle diplomacy by the White House and other regional actors,” said Stephen Innes, managing partner at SPI asset Management.
Though Innes added: “Nevertheless, this optimism comes before Israel launches its ground offensive in Gaza, and this development could swiftly sour sentiment once more.”
An indication of waning geopolitical angst was a steadier showing in havens like Treasurys
BX:TMUBMUSD10Y,
Brent crude’s
BRN00,
move back down towards $90 a barrel and a stall in gold’s
GC00,
recent rally.
U.S. economic updates set for release on Tuesday include retail sales for September, due at 8:30 a.m. Eastern, September industrial production and capacity utilization 9:15 a.m., followed by the homebuilder confidence index for October and August business inventories at 10 a.m.
Federal Reserve officials in line to speak include John Williams, New York Fed president, talking at the the Economic Club of New York at 8 a.m.; and Richmond Fed President Tom Barkin making comments on the economic outlook at 10:45 a.m.
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