Traders on the floor of the New York Stock Exchange, Oct. 21, 2022.
At Friday’s close, all three major indexes posted their best weekly performances since June, with U.S. stock futures rising late Sunday.
Futures linked to the Dow Jones Industrial Average rose 222 points, or 0.71%. S&P 500 futures and Nasdaq 100 futures rose 0.88% and 1.00%, respectively.
It’s another volatile week for stocks as the third-quarter earnings season heats up. On Friday, the Dow rose more than 748 points, or 2.47%. The S&P 500 and Nasdaq Composite rose 2.37% and 2.31%, respectively. That added to gains earlier in the week. The S&P 500 and Dow rose 4.7% and 4.9%, respectively, while the Nasdaq gained 5.2%.
So far, earnings reports for stocks have had mixed results. Bank stocks Goldman Sachs and JPMorgan Chase & Co. rose more than 4 percent on Friday after reporting results. But not all results were solid — Snap fell 28% after reporting an earnings miss.
While bond yields were higher, stocks also rose on Friday — with the 10-year Treasury note hitting its highest level since 2008 amid mixed corporate earnings. Bond yields are inversely proportional to prices.
“The stock market is trying to bottom out to get into the last leg of a bear market,” David Donabedian, chief investment officer at CIBC Private Wealth US, said in a note Friday. “It feels like a two-way market right now. We’re in between the skeptics and those who think It’s time for a tug-of-war between those who own the stock.”
The week ahead will see more big earnings announcements, including tech giants such as apple, letter, Amazon and Microsoft. Wall Street will also be watching for more inflation data – on Monday the manufacturing and services PMIs for October will be released.