Dow futures gain slightly ahead of a big week of earnings

US stock index futures rose slightly during overnight trading on Sunday, after the major averages posted their best week in months amid a stronger-than-expected start to the earnings season.

Futures related to the Dow Jones Industrial Average rose 40 points. S&P 500 futures rose 0.1%, while Nasdaq 100 futures rose 0.2%.

The major averages come from a winning week. The Dow advanced 382 points on Friday, ending the week with a 1.58% gain for its best week since June. The S&P 500 rose 1.82% last week for its best week since July, while the Nasdaq Composite had its best week since the end of August, as the technology-heavy index added 2.18%.

In addition to Goldman Sachs’ better-than-expected earnings on Friday, positive economic data also boosted stocks. Retail sales rose 0.7% in September, the Census Bureau said Friday, while economists polled by Dow Jones expected a 0.2% decline.

“Wall Street was expecting a slowdown in spending, but it turns out that the American consumer should not be messed about,” said Edward Moya, chief market analyst at Oanda. “The back-to-back retail sales data that came in better than expected shows that the consumer looks strong as the holiday season approaches,” he added.

Earnings season is now in full swing, and a number of big names are due to report next week, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon, and IBM are among the other names on board this week.

So far, 41 components of the S&P 500 have reported third-quarter results, with 80% of them beating EPS expectations, according to data from FactSet. Taking into account companies that have already submitted reports and estimates for the remainder, third-quarter earnings growth will total 30%, the third-highest quarterly growth rate for S&P 500 companies since 2010, according to FactSet.

Strong results from the first week of earnings, including from major banks, have pushed the major averages close to all-time highs. The Dow is less than 1% from its high, while the S&P 500 and Nasdaq Composite are down 1.6% and 3.3%, respectively.

As earnings season enters its peak, investors will be watching the company’s comments about supply chain bottlenecks and inflation, among other things.

“Growth appears likely to pick up in 2022 due to the delayed effects of monetary stimulus, the delayed effects of higher net consumer value, reopenings, and inventory rebuilding,” Ed Hyman, president of Evercore ISI, wrote in a note to clients on Sunday. He added, “Supply chain problems are likely to recede, and uncapped demand from this year is likely to be met next year. Wages are likely to increase, raising consumers’ incomes.”

Bitcoin retreated from its recent high, but settled above $60,000 on Sunday, according to data from Coin Metrics, with the first ever Bitcoin futures-traded fund set to begin trading this week.

Bitcoin soared on Friday in anticipation of such a listing. The world’s largest cryptocurrency crossed $60,000 last week for the first time since April, with its trade reaching $62,307.

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