U.S. stock futures registered minimal movement Sunday evening as market participants prepared for a week of corporate earnings announcements and key inflation data. The market opening on October 11 followed a week of gains for the major indexes amid investor focus on corporate performance and geopolitical developments in the Middle East.
On Sunday evening, futures tied to the S&P 500 index increased by 0.12%, while Nasdaq 100 futures rose 0.24%. Dow Jones Industrial Average futures were up 28 points, or 0.05%.
The stable open followed a positive prior week for the main U.S. stock indexes. Both the Dow and the S&P 500 recorded their second positive week in three. The Nasdaq Composite posted its fourth consecutive week of gains.
Market sentiment is being shaped by several factors, including geopolitical events. President Donald Trump told reporters on Saturday that his administration is considering joining Saudi Arabia in response to an attack on an international airport in Riyadh, which has been attributed to Houthi forces in Yemen.
When asked by reporters outside the White House if the U.S. would support Saudi Arabian strikes, Trump said, “We may. We’re going to look at it. We just found out about the recent attack. So, we’ll make a decision. We move very quickly.”
Investors are also anticipating the start of the third-quarter earnings season. According to data from FactSet, companies in the S&P 500 are projected to report earnings growth of 29.6% for the quarter. A number of major financial institutions are scheduled to release their results this week, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.
In addition to corporate earnings, new economic data on inflation is scheduled for release. The Consumer Price Index (CPI) for September is expected on Wednesday, followed by the Producer Price Index (PPI) on Thursday.
Market observers are also monitoring high energy prices and borrowing costs. Brent crude futures were last reported trading above $104 per barrel, and the 10-year Treasury yield reached levels last seen in 2002.
Brian Leonard, portfolio manager of the Keeley Gabelli Small Cap Dividend Fund, commented on the metrics investors are evaluating. “Can this company withstand what’s happening? Pass along, continue to grow margins, and the future is going to be better than the most recent past,” Leonard stated.
