Traders on the floor of the NYSE, Aug. 4, 2022.
Source: NYSE
Stock futures rose Monday as investors weighed key earnings reports after a wild week of trading.
Futures on the Dow Jones Industrial Average gained 340 points, or 1.1%. S&P 500 futures and Nasdaq 100 futures advanced 1.4% and 1.8% higher, respectively.
Monday’s moves came as the British pound rose on more policy reversals from the UK government. New UK finance minister Jeremy Hunt announced that almost all planned tax cuts would be scrapped. The pound traded 1% higher at $1.127 per U.S. dollar.
The S&P 500 just came off its fourth negative week in five with a 1.6% loss last week. A hotter-than-expected inflation reading stoked wild price swings in the markets as investors readjusted their expectations for the Federal Reserve’s coming rate hikes.
“As inflation remains elevated for longer and the Fed hikes further, the risk increases that the cumulative effect of policy tightening pushes the U.S. economy into recession, undermining the outlook for corporate earnings,” Mark Haefele, CIO at UBS Global Wealth Management, said in a note.
Meanwhile, the third-quarter earnings season has kicked off. Investors are monitoring if corporate America will have any significant downward revisions to their outlooks in the face of stubbornly high inflation and the economic slowdown.
Bank of America on Monday reported better-than-expected results, sending the stock higher in the stock higher in the premarket. Bank of New York Mellon also posted results that beat analyst expectations. JPMorgan Chase and Wells Fargo reported solid results last week, while Morgan Stanley’s equity trading revenue disappointed.
Many notable technology names are also reporting this week, including Netflix, Tesla and IBM. Johnson & Johnson, United Airlines, AT&T, Verizon and Procter & Gamble are other big companies on investors’ radar.