Traders on the floor of the NYSE, October 21, 2022.
Source: NYSE
US stock futures fell on Monday morning after all three major averages posted their best week since June at the close on Friday.
Futures linked to the Dow Jones Industrial Average lost 116 points, or 0.37%. S&P 500 and Nasdaq 100 futures were down 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 Nasdaq Composite rose 2.37% and 2.31%, respectively. This added to early week gains. The S&P 500 and Dow gained 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%.
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.
Stocks also rose on Friday even as bond yields rose, with the 10-year U.S. Treasury hitting its highest level since 2008 amid mixed corporate profits. Bond yields are inverse to price.
“The equity market is trying to form a fund to hit the last leg of the bear market,” David Donabedian, chief investment officer at CIBC Private Wealth US, said in a note on Friday. “It feels like a two-way market right now. We have a tug-of-war between the skeptics and those who think it’s time to own stocks.”
There are more big earnings reports on deck next week, including tech giants like Apple, Alphabet, Amazon and Microsoft. Wall Street will also be waiting for more inflation data: October manufacturing and services purchasing managers’ indexes will be released on Monday.