U.S. stock futures rose slightly on Monday as traders sought to build on strong gains seen last week.
Futures linked to the Dow Jones Industrial Average rose 140 points, or 0.5%. S&P 500 and Nasdaq 100 futures gained 0.4% and 0.1%, respectively.
The moves come after another volatile week for stocks as the third-quarter earnings season heats up. The major averages had their biggest weekly gains since June, with the Dow advancing 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2%, respectively.
Some of those gains came on Friday, when the Dow rallied more than 700 points, while the S&P 500 and Nasdaq rose about 2.3%.
Investors will be watching the earnings of tech giants like Apple, Alphabet, Amazon and Microsoft this week. Wall Street will also be waiting for more inflation data, with October manufacturing and services purchasing managers’ indexes due on Monday.
“The S&P 500 rose 4.7% for the week, with energy/materials and technology outperforming and defensive sectors underperforming in essentially a reversal of the broad trend since early August ” Raymond James analyst Tavis McCourt said in a note on Sunday. “It is not known whether the rally is sustainable or to what extent, but the reasons seem to be EPS revisions, which appear to be better than feared so far (like the second quarter), along with the expectation that a front-loaded Fed cycle. could come to an end in early 2023.”
So far, earnings reports have had mixed results for the stock. On Friday, banking stocks Goldman Sachs and JPMorgan Chase gained more than 4% after reporting results. But not all results have been solid: Snap lost 28% after reporting an earnings miss.