Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Jeenah Moon | Reuters
U.S. stock futures were little changed on Sunday night after the major averages posted a winning week, as investors looked ahead to a busy week of earnings results and inflation data.
Dow Jones Industrial Average futures rose by 9 points, or 0.02%. S&P 500 futures and Nasdaq 100 futures climbed 0.03% and 0.07%, respectively.
Wall Street is coming off a winning week for the major averages, as a rally in tech stocks helped investors shrug off higher oil prices and yields. The Dow and S&P 500 each posted their second positive week in three, while the Nasdaq Composite netted its fourth straight week of gains.
But concerns about energy prices resurfaced after President Donald Trump told reporters over the weekend that he is considering joining Saudi Arabia in its fight against Tehran-backed Houthis in Yemen after another deadly attack on Riyadh’s international airport. The remarks raised the prospect of escalating tensions in the region.
Investors hope the third-quarter earnings season will help stocks power through the Middle East turmoil. By all estimations, the incoming results are expected to be strong. According to FactSet’s John Butters, the S&P 500 is set to post 29.6% earnings growth in the quarter. That would be the fourth straight quarter that the broader index posts above-25% earnings growth, thanks to the strength of the AI data center buildout.
But it’s what managers say that will matter more to investors, given the uncertainty around how businesses and their customers are contending with higher fuel and borrowing costs. Brent crude futures last traded above $104 a barrel, while the 10-year yield last week breached levels not seen since 2002.
“Investors have kind of narrowed in on some of the important aspects,” said Brian Leonard, portfolio manager of Keeley Gabelli Small Cap Dividend Fund (KSDIX). “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.”
The reporting season will ramp up in earnest this week with the big banks, with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo all expected to post results this week.
Key inflation data is also due out this week, with the September consumer and producer price indexes due out Wednesday and Thursday, respectively.
— CNBC’s Terri Cullen contributed to this report.
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