TSLA - US Stocks On Track For A Strong Start To Week Buoyed By Earnings Optimism: Analyst Flags 13-14% Upside As Bull Market Enters Its Second Year | Benzinga
Earnings optimism has kept sentiment buoyant, with the stock futures pointing to a higher opening on Monday. The third-quarter earnings season starts in earnest this week, with some blue chip companies, including Tesla, Inc. (NASDAQ:TSLA), Netflix, Inc. (NASDAQ:NFLX), Procter & Gamble Co. (NYSE:PG) and Johnson & Johnson (NYSE:JNJ) scheduled to release their earnings.
S&P 500 earnings could edge up 0.4% in the third quarter, potentially marking an inflection following four straight quarters of negative earnings growth, said data analytics company FactSet.
Traders may look to a regional manufacturing activity reading and the Fed speeches scheduled for the day for trading cues. Oil has begun ticking higher, and so have bond yields.
Tech stocks appear to be on the back foot in premarket trading, given their looming earnings and fears concerning the sustainability of their stretched valuation. In the eventuality of the economic picture worsening, the earnings of these companies are at risk.
Cues From Past Week's Trading:
U.S. stocks closed the week ended Oct. 13 on a mixed note as traders digested inflation readings that came in above expectations and the spike in oil prices on the Israel-Hamas conflict in the Middle East. Optimism concerning a positive third-quarter earnings season, dovish comments from some Fed officials, and the pullback in bond yields helped mitigate the weakness.
The S&P 500 indices settled higher for a second straight week.
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