Traders on the floor of the NYSE, Oct. 21, 2022.
U.S. stock futures rose Sunday evening after all three major averages notched their best week since June at Friday’s close.
Futures tied to the Dow Jones Industrial Average gained 222 points, or 0.71%. S&P 500 futures and Nasdaq 100 futures increased 0.88% and 1.00%, respectively.
The moves come after yet another volatile week for stocks as third-quarter earnings season heats up. On Friday, the Dow gained more than 748 points, or 2.47%. The S&P 500 and the Nasdaq Composite rose 2.37% and 2.31%, respectively. That added to gains from earlier in the week. 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 stocks. On Friday, bank stocks Goldman Sachs and JPMorgan Chase gained more than 4% after reporting results. But not all results have been solid — Snap shed 28% after reporting an earnings miss.
Stocks also rose Friday despite bond yields marching higher – the 10-year U.S. Treasury hit its highest level since 2008 amid mixed corporate earnings. Bond yields are inverse to price.
“The equities market is trying to form a bottom to get to the last leg of the bear market,” said David Donabedian, chief investment officer of CIBC Private Wealth US, in a Friday note. “It feels like a two-way market right now. We have a tug of war going on between the skeptics and those who think it is time to own equities.”
There are more big earnings reports on deck in the coming week, including tech giants such as Apple, Alphabet, Amazon and Microsoft. Wall Street will also be watching for more inflation data — on Monday, the October manufacturing and services purchasing managers indexes will be released.