U.S. stocks could get off to a mixed start on Monday after the averages posted weekly gains for a fifth straight week. The bond market is closed on account of Columbus Day, which is a federal holiday, but the stock market will trade during usual hours. The majority opinion among strategists hints at a potential pause in stock rally over the next couple of weeks before resuming in the final two months of the year.
That said, earning news flow will pick up momentum in the coming days, potentially cushioning any downside. Cumulative earnings of S&P 500 companies are set to rise for a fifth straight quarter, FactSet said. This, though, would mark a slowdown from the 11.2% growth reported for the second quarter.
On Monday, traders could focus on a couple of Fed speeches and a consumer inflation expectations survey as well as the bond yield even as they look ahead to some key earnings reports over the week.
Futures
Performance (+/-)
Nasdaq 100
+0.35%
S&P 500
+0.23%
Dow
-0.06%
R2K
+0.36%
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) added 0.19% to $580.68 and the Invesco QQQ ETF (NASDAQ:QQQ) moved up 0.33% to $495.07, according to Benzinga Pro data.
Cues From Last Week:
Despite the consumer price inflation data throwing investors off guard, the market had enough momentum to keep the rally going in the week ended Oct. 11. A rise in bond yields following some recent strong data and the Hurricane Milton threat also exerted downward pressure on the market, but a benign producer price inflation report and a good start to big bank earnings provided the offsetting impact.
The Dow Jones Industrial Average and the S&P 500 Index ended at fresh intraday and closing highs, while the ...
