Traders work on the ground of the New York Stock Exchange (NYSE) in New York, October 27, 2021.
Brendan McDermid | Reuters
U.S. inventory futures rose barely in in a single day trading on Sunday as traders readied for the first trading of November.
Market members are gearing up for one more week of company earnings, a key Federal Reserve assembly on Wednesday and October’s jobs report.
Dow futures rose 80 factors. S&P 500 futures gained 0.25% and Nasdaq 100 futures rose 0.25%.
Stocks closed out the month of October on Friday and all three main averages closed at report highs. The S&P 500 and Nasdaq clinched their greatest months since November 2020.
The Dow Jones Industrial Average rose 5.8% in October. The S&P 500 rallied 6.9% final month and the technology-focused Nasdaq Composite added 7.3% in October. The month marked a rebound from September, the place the main indexes declined.
Corporate earnings season dominated October amid strong earnings even with international provide chain issues. About half of the S&P 500 corporations have reported quarterly outcomes and greater than 80% of them beat earnings estimates from Wall Street analysts, based on Refinitiv.
As earnings season continues this week, traders may even be monitoring the Federal Reserve’s two-day assembly Tuesday and Wednesday. The central financial institution is extensively anticipated to announce that it’s going to start to unwind its $120 billion in month-to-month bond purchases and finish this system solely by the center of subsequent yr.
Investors may even be on the lookout for the Fed’s feedback on rising costs as inflation has been working at a 30-year excessive.
“The Fed is part of a global move to remove accommodation, and the market drives right past that,” Bleakley Advisory Group CIO Peter Boockvar mentioned. “In a way, the stock market is playing a game of chicken, with this inflation move and interest rates and the response from central banks.”
The different large occasion for the week shall be October’s October employment report Friday, which might present some enchancment in hiring, as new circumstances of Covid-19 continued to say no.
“The change in nonfarm payrolls is expected to be a robust 450K which is likely to again lower the unemployment rate,” mentioned Jim Paulsen, chief funding strategist for Leuthold Group. “Key to the report will be how much wage inflation rises and whether the labor force participation rate finally picks up after so many recently came of extended unemployment benefits.”
—CNBC’s Patti Domm contributed to this report.