Market Snapshot: S&P 500 futures pull back from six-week highs as traders eye looming Fed meeting

by | Oct 31, 2022 | Stock Market

U.S. stock futures on Monday pulled back from six-week highs as traders eyed the Federal Reserve’s midweek decision on interest rates.How are stock-index futures trading
S&P 500 futures
ES00,
-0.47%
dipped 19 points, or 0.5%, to 3893

Dow Jones Industrial Average futures
YM00,
-0.38%
fell 117 points, or 0.4%, to 32779

Nasdaq 100 futures
NQ00,
-0.63%
eased 72 points, or 0.6%, to 13515

On Friday, the Dow Jones Industrial Average
DJIA,
+2.59%
rose 829 points, or 2.59%, to 32862, the S&P 500
SPX,
+2.46%
increased 94 points, or 2.46%, to 3901, and the Nasdaq Composite
COMP,
+2.87%
gained 310 points, or 2.87%, to 11102.1%.

What’s driving markets Stocks looked set to pare some of their recent sharp gains as a more cautious tone took hold ahead of the Federal Reserve’s monetary policy meeting concluding on Wednesday. The Dow Jones Industrial Average closed Friday’s session up 14.4% so far in October, in line for its best month since January 1976, and its best October ever, after investors rushed back into the market following the late summer sell-off. “Last week, there were plenty of reasons for stocks to sell off hard: market stalwarts like Alphabet
GOOG,
+4.30%,
Amazon
AMZN,
-6.80%
and Meta Platforms
META,
+1.29%
disappointed and sold off double-digits; September PCE, Fed’s preferred inflation measure, came in at 5.15%, up from 4.89% in August; and China instituted further lockdowns,” said Tom Lee, head of research at Fundstrat. “Yet, the S&P 500 managed to gain 4% for the week, bringing total gains to 12% in two weeks. The most interesting takeaway, in our view, is that consensus has become even more negative in the face of the market gains,” Lee added. John Butters, senior earnings analyst at Factset, noted that with just over half of S&P 500 companies having reported third quarter 2022 results, the blended earnings growth rate for the index so far was 2.2%, the lowest such rate since the -5.7% seen in Q3 2020. Still, the market reaction suggests that though earnings may not be great relative to previous quarters, they’ve been better than many investors feared, with 71% of companies delivering a positive earnings per share surprise and 68% a positive revenue surprise.

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