Stock futures fall after posting their best week since June

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

Source: NYSE

US stock futures fell Monday morning after all three major averages hit their best week since June at Friday’s close.

Futures linked to the Dow Jones Industrial Average lost 116 points, or 0.37%. S&P 500 and Nasdaq 100 futures lost 0.41% and 0.47% respectively.

The moves come after another volatile week for stocks as the third-quarter earnings season heats up. On Friday, the Dow gained more than 748 points, or 2.47%. The S&P 500 and the Nasdaq Composite rose 2.37% and 2.31% respectively. This added to gains earlier in the week. The S&P 500 and the Dow gained 4.7% and 4.9% respectively, while the Nasdaq rose 5.2%.

So far, earnings reports have had mixed results for stocks. On Friday, bank stocks Goldman Sachs and JPMorgan Chase gained more than 4% after the earnings release. But not all results were strong – Snap lost 28% after reporting a shortfall.

Stocks also rose on Friday despite rising bond yields – the 10-year US Treasury hit its highest level since 2008 amid mixed corporate earnings. Bond yields are inverse to price.

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

There are more big deck earnings reports in the coming week, including tech giants such as Apple, Alphabet, Amazon and Microsoft. Wall Street will also be watching more inflation data – on Monday, the October manufacturing and services purchasing managers’ indices will be released.

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