Stock futures tumble as inflation fears outweigh earnings optimism – .

Stocks soar, inflation fears persist – .

Stocks fell on Monday to restore some gains after the S&P 500’s best week since July, as investor worries about high inflation offset hopes that more companies will follow the lead of the big banks last week and publish solid quarterly results.
The Dow, S&P 500 and Nasdaq each moved lower. The measures followed a decline in foreign stocks after China announced its lowest GDP growth rate since last year for the third quarter, as energy shortages and turmoil in the real estate sector dampened the economic activity in the world’s second largest economy. West Texas Intermediate Crude Oil Futures (CL = F) surged above $ 83 per barrel to their highest level since 2014, and the benchmark 10-year Treasury yield is returned to above 1.6%.

This week, investors expect a well-rounded list of corporate results, which will help shed light on how companies across various industries have handled inflationary trends, widespread labor shortages and lingering labor disruptions. virus. The remarks of some leaders have further confirmed the weight of these issues. Fastenal (FAST) CEO Daniel Florness said during last week’s earnings call that “product and shipping cost inflation is not only high, it is brutally high”.

But an otherwise strong start to the earnings season last week helped fuel optimism that corporate earnings have held up stronger than expected overall, even in the face of a myriad of supply-side challenges. Big banks from Morgan Stanley (MS) to Bank of America (BAC) and Goldman Sachs (GS) far exceeded estimates in their third quarter results last week, and many executives at those companies offered optimistic valuations of the state of the US consumer, or the demand engine of the US economy. The remarks helped affirm trends seen in recent economic data, with US retail sales unexpectedly posting a monthly gain of 0.9% in September, government data showed last week.

“We started this week very strong. The banks have done very well… It started to ease people’s worries a bit, especially when the CEOs of the bank said the consumer looked strong, ”Victoria Fernandez, Crossmark Global Investments chief market strategist, told Yahoo Finance Live on Friday. “And that, I think, will be the key to the future of the market. If the consumer is there and willing to spend – what we saw in September [when] retail sales have started to come back a bit – so I think that gives the market a bit more optimism that as we continue to reopen, earnings are strong, the consumer will be there and the stock markets will continue to increase. “

The S&P 500’s expected earnings growth rate on Friday was 30%, according to FactSet. This figure – based both on the actual profits of companies that have published so far and on expectations for future results – represents an increase from the previous week, when the expected third quarter earnings growth rate amounted to about 27.6%.

9:30 am ET: Stocks open lower, returning gains

Here’s where the markets were trading after the opening bell Monday morning:

  • S&P 500 (^ GSPC): -18.85 (-0.42%) to 4,452.52
  • Dow (^DJI): -158.64 (-0.45%) to 35,136.12
  • Nasdaq (^IXIC): -62.33 (-0.42%) to 14,836.02
  • Brut (CL=F): + $ 0.83 (+1.01%) to $ 83.11 per barrel
  • Or (CG=F): $ -0.90 (-0.05%) to $ 1,767.40 per ounce
  • 10-year cash flow (^TNX): + 2.9 bps for a yield of 1.605%

7:58 a.m. ET: Bitcoin prices hover near six-month high as very first bitcoin futures ETF prepares for launch

Bitcoin (BTC) prices hovered around $ 60,700 on Monday morning after breaking above the $ 60,000 mark for the first time since April last week.

The jump came alongside reports that the Security and Exchange Commission is unlikely to prevent the launch of a new bitcoin exchange-traded fund (ETF) based on futures contracts on the New York Stock Exchange on Tuesday. ETF provider ProShares confirmed to the New York Times on Monday that the fund will launch as planned, making it the very first bitcoin futures ETF on the stock exchange. The ETF will provide investors with exposure to Bitcoin futures contracts, allowing them to bet on expected price changes rather than the crypto spot prices themselves.

7:35 a.m. ET Monday: Stock futures point to lower open

Here’s where the markets were trading ahead of the opening bell Monday morning:

  • S&P 500 Futures Contracts (ES = F): -10.25 points (-0.23%), to 4,452.25
  • Dow Futures (YM=F): -91 points (-0.26%), at 35,080.00
  • Nasdaq Futures (NQ = F): -26.50 points (-0.18%) to 15,108.00
  • Brut (CL=F): + $ 1.35 (+ 1.64%) to $ 83.63 per barrel
  • Or (CG=F): – $ 3.90 (-0.22%) to $ 1,764.40 per ounce
  • 10-year cash flow (^TNX): +1.9 bps for a yield of 1.595%
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, September 29, 2021. REUTERS / Brendan McDermid

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter


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