Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Gina Moon | Reuters
S&P 500 futures were little changed Sunday night after major averages had a strong week as investors braced for a busy week of earnings and inflation data.
Futures tied to the broader market rose 0.12%, while Nasdaq 100 futures rose 0.24%. Dow Jones Industrial Average futures rose 28 points, or 0.05%.
Wall Street is coming off a winning week for the major averages, with gains in tech stocks helping investors hedge against rising oil prices and yields. The Dow and S&P 500 each posted their second positive week in three, and the Nasdaq Composite rose for the fourth consecutive week.
But concerns about energy prices resurfaced after a deadly new attack on Riyadh’s international airport and after President Donald Trump told reporters over the weekend that he was considering joining Saudi Arabia in the fight against Tehran-backed Houthis in Yemen. The remarks raised the possibility of escalating tensions in the region.
Investors are hoping that the third quarter earnings season will lead to a rally in stocks to overcome the turmoil in the Middle East. No matter how you look at it, future results are expected to be positive. The S&P 500 is expected to post 29.6% earnings growth in the quarter, according to FactSet’s John Butters. This marks the fourth consecutive quarter that the composite index has posted earnings growth of more than 25%, thanks to the strength of its AI data center build.
But what executives say will carry more weight for investors, given the uncertainty about how companies and their customers will contend with rising fuel and borrowing costs. Brent crude oil futures last traded above $104 a barrel, and 10-year bond yields last week topped levels not seen since 2002.
“Investors have sort of narrowed down some of the key aspects,” said Brian Leonard, portfolio manager at the Keeley Gabelli Small Cap Dividend Fund (KSDIX). “Can this company survive what’s happening now? If it gets through and continues to grow profits, the future will be better than the recent past.”
Earnings season for major banks begins in earnest this week, with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo expected to report results this week.
Key inflation figures will also be released this week, with September consumer price index and producer price index released on Wednesday and Thursday respectively.
—CNBC’s Terry Cullen contributed to this report.
