After two weeks of terrible earnings, it is now time for the stock market to turn around. Investors are optimistic that good news from technology will help them recover their losses.
The “stock market futures for today” is a term that has been used in the past to describe how investors should be reacting to the upcoming earnings.
Stock futures in the United States rose higher ahead of a busy week of results from key technology giants.
S&P 500 futures rose 0.1 percent on Monday, hinting to a continuation of last week’s gains, which saw the broad market index increase 1.6 percent to a new record. After the opening bell, Nasdaq-100 futures rose 0.2 percent, implying modest gains for technology firms. Futures for the Dow Jones Industrial Average remained mostly unchanged.
After the markets close on Monday, Facebook will release its third-quarter earnings. Tuesday will see Microsoft, Twitter, and Alphabet, Google’s parent firm. Apple and Amazon.com are set to release earnings later this week.
Stocks have risen in the last week as strong results from banks, consumer businesses, and manufacturing assuaged investors’ fears that increased inflation and labor shortages would reduce profitability.
“One of the more remarkable takeaways from the earnings reports seen so far has been firms’ ability, for the most part, to pass on price increases to their consumers without witnessing a decline in sales,” said Michael Hewson, CMC Markets’ chief markets analyst.
Mr. Hewson believes Snap’s disappointing results last week, in which the firm warned that new privacy restrictions from Apple will likely constrain its advertising sales, might be a “canary in the coal mine” for the rest of the tech industry. It “may see the atmosphere deteriorate fairly rapidly” if the tech companies reporting profits this week also provide bleak forecasts.
The response of global central banks to increasing prices remains a critical concern. Investors believe the British government will hike interest rates as soon as November, based on recent trade in short-dated U.K. gilts. Investors are looking for remarks from the European Central Bank and the Bank of Japan, which are also meeting this week. The Federal Reserve has hinted that interest rates may be raised next year.
Money managers are also keeping a close eye on congressional deliberations in the United States over the fate of President Joe Biden’s massive social-policy spending program. House Speaker Nancy Pelosi expressed optimism on Sunday that a framework for the package and a vote on a separate infrastructure financing bill may be achieved this week.
Government expenditure of this kind will “continue to boost growth,” according to Esty Dwek, chief investment officer of Swiss online bank FlowBank. “The issue now is how they will pay for it in terms of taxes.”
The 10-year Treasury note yield increased to 1.661 percent on Monday, up from 1.654 percent on Friday. Bond yields move in the opposite direction of bond prices.
Bitcoin traded about $61,900 on Monday, up 1.9 percent from its level at 5 p.m. ET on Friday. After clearing $66,000 to set a new all-time high last week, the cryptocurrency has weakened.
Overseas, the Stoxx Europe 600 index remained almost unchanged on Monday. HSBC climbed 0.8 percent among European stocks after reporting a higher third-quarter earnings and announcing that it will spend up to $2 billion on stock buybacks. After discussions with the Italian government to buy nationalized institution Monte dei Paschi fell down, UniCredit fell 2.2 percent.
Major Asian benchmarks were mixed. The Shanghai Composite Index increased by 0.8 percent, while the Nikkei 225 in Japan fell by 0.7 percent.
After President Recep Tayyip Erdogan threatened to dismiss the US ambassador and senior diplomats from nine other Western nations over the weekend, the Turkish lira fell 1.8 percent to its lowest level on record, trading at 9.8 lira to the dollar on Monday.
Stocks have risen this week as a result of strong results.
courtesy of Shutterstock/Justin Lane
Anna Hirtenstein can be reached at [email protected].
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The “stock market today” is a place where a lot of people look for the latest news on the stock market. The stock market is going to be very interesting this week because it’s going to be releasing earnings from tech companies.
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