Stocks are likely to move to the upside in early trading on Monday, regaining ground following the sharp pullback seen last Friday. The major index futures are currently pointing to a notably higher open for the markets, with the S&P 500 futures jumping by 1.3 percent.
An early rally would extend recent volatility on Wall Street, as stocks showed wild swings to close out the previous week.
Traders may look to pick up stocks at reduced levels following the steep drop seen on Friday, which dragged the Nasdaq down to its lowest closing level in over two years.
A pullback by treasury yields may add to the buying interest, with the yield on the benchmark ten-year note falling below 4.0 percent.
The markets may also benefit from a positive reaction to earnings news from financial giant Bank of America (BAC).
Shares of Bank of America are jumping by 2.6 percent in pre-market trading after the company reported third quarter results that beat expectations on both the top and bottom lines.
Earnings season will continue to pick up in the coming days, as Goldman Sachs (GS), Johnson & Johnson (JNJ), Netflix (NFLX), Procter & Gamble (PG), IBM Corp. (IBM), Tesla (TSLA), AT&T (T) and American Express (AXP) are among the companies due to report their quarterly results.
On the economic front, the Federal Reserve Bank of New York released a report showing regional manufacturing activity has contracted by more than expected in the month of October.
The New York Fed said its general business conditions index slid to a negative 9.1 in October from a negative 1.5 in September, with a negative reading indicating a contraction in regional manufacturing activity. Economists had expected the index to dip to a negative 4.0.
After ending Thursday’s wild ride sharply higher, stocks showed a substantial pullback over the course of the trading session on Friday. The major averages all posted steep losses, with the tech-heavy Nasdaq plunging to its lowest closing level in over two years.
The major averages saw further downside going into the close, ending the day near their lows of the session. The Dow slumped 403.89 points or 1.3 percent to 29,634.83, the Nasdaq dove 327.76 points or 3.1 percent to 10,321.39 and the S&P 500 tumbled 86.84 points or 2.4 percent to 3,583.07.
For the week, the major averages turned in a mixed performance. While the Dow jumped by 1.2 percent, the S&P 500 slid by 1.5 percent and the Nasdaq plunged by 3.1 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index slumped by 1.2 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has advanced by 0.8 percent, the French CAC 40 Index and the German DAX Index are both up by 1.2 percent.
In commodities trading, crude oil futures are rising $0.32 to $85.93 a barrel after plunging $3.50 to $85.61 a barrel last Friday. Meanwhile, after tumbling $28.10 to $1,648.90 an ounce in the previous session, gold futures are jumping $21.40 to $1,670.30 an ounce.
On the currency front, the U.S. dollar is trading at 148.69 yen versus the 148.67 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $0.9772 compared to last Friday’s $0.9722.
Business News
Futures Pointing To Initial Strength On Wall Street
2022-10-17 12:54:59
