U.S. stocks could get off to a mixed start on Monday after the averages posted weekly gains for a sixth straight week.
Earning news flow will pick up momentum in the coming days, potentially cushioning any downside, with Tesla Inc. TSLA, Boeing Co. BA, General Motors Co. GM and several others set to post their results through Friday.
Nearly a fifth of S&P 500 companies are set to report their earnings this week. Cumulative earnings of S&P 500 companies are set to rise for a fifth straight quarter, FactSet said. According to the analytics firm, 79% of the 14% of S&P 500 companies that have reported so far have exceeded Street expectations.
On Monday, traders could focus on earnings from over 100 S&P 500 companies, and some focus could also be on the housing market.
| Futures | Performance (+/-) |
| Nasdaq 100 | -0.23% |
| S&P 500 | -0.08% |
| Dow Jones | 0.03% |
| R2K | 0.17% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY fell 0.21% to $583.38 and the Invesco QQQ ETF QQQ declined 0.38% to $492.60, according to Benzinga Pro data.
Cues From Last Week:
Despite simmering tensions in the Middle East, Energy was the worst-performing sector in the market due to multiple factors. Slower economic growth in China and a surge in U.S. oil production resulted in a fall of over 8% in WTI crude prices.
The Dow Jones Industrial Average and the S&P 500 Index jumped to fresh highs in intraday trading on Friday.
| Index | Week’s Performance (+/-) | Value |
| Nasdaq Composite | -0.07% | 18,489.55 |
| S&P 500 | 0.08% | 5,864.67 |
| Dow Jones | 0.49% | 43,275.91 |
| Russell 2000 | 1.87% | 2,276.09 |
Insights From Analysts:
Ryan Detrick, Chief Market Strategist at Carson Group, recently highlighted positive trends for the S&P 500, noting that the index has risen in 10 of the last 11 months.
Detrick emphasized the significance of sustained bull markets, remarking, "Once a bull market gets past its second birthday, they tend to last for many more years." This insight suggests a robust outlook for investors as the current bull market matures.
Detrick underscored that the S&P 500 has registered a six-week streak of gains for the first time this year. Referencing data from 51 similar instances in the past, Detrick concluded that stocks surged 86.3% of the time when this happened, registering an average increase of 11.1%.
"Both are better than any-time returns," he noted, reinforcing his bullish sentiment.
Nathan Peterson, Director of Derivatives Analysis at the Schwab Center for Financial Research, noted that the focus will be on earnings next week.
"At this point in time, I don’t see enough to suggest that we may be setting up for a mean reversion pullback, so the path of least resistance still seems to be higher in my view."
He underscored that his view on equities this week is "slightly bullish."
However, in case earnings momentum reverses, investors could book profits, Peterson added.
See Also: How To Trade Futures
Upcoming Economic Data
This week's economic calendar is light, but housing market data could influence investor sentiment – September's existing home sales data is scheduled to be released on Wednesday, while new home sales data will be out on Thursday.
- On Monday, Dallas Fed President Lorie Logan will speak at 8:55 a.m. ET.
- On Tuesday, Philadelphia Fed President Patrick Harker has a speech scheduled at 10 a.m. ET.
- On Wednesday, Fed Governor Michelle Bowman is scheduled to speak at 9 a.m. ET.
- Initial jobless claims are scheduled to be released on Thursday at 8:30 a.m. ET.
Stocks In Focus:
- Boeing Co. BA surged 3.8% in premarket trading after the company landed a big win with Emirates SkyCargo ordering five more Boeing 777 freighters.
- Tesla, Inc. TSLA edged lower, down by 0.8% after Friday’s marginal decline of 0.1%.
- Nvidia Corp. NVDA rose 0.33%, building on gains of 0.8% on Friday.
- Bank of America Corp. BAC shares fell 0.3% in premarket trading after the company announced the extension of guaranteed exchange rates by up to a year.
Commodities, Bonds And Global Equity Markets:
Crude oil futures edged up in the early New York session, rising nearly 1.65% as China lowered its key lending rates to support the economy.
The 10-year Treasury note yield rose marginally to 4.126%.
Most major Asian markets ended lower on Monday, with Chinese markets edging lower amid economic growth concerns.
European stocks showed tentativeness and were mostly lower in early trading.
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