Dow futures drop slightly after blue chip average hits third consecutive winning week
Traders work on the floor of the New York Stock Exchange (NYSE) on October 15, 2021 in New York City.
Spencer Platt | Getty Images
Stock futures edged down in overnight trading on Sunday after the Dow Jones Industrial Average posted its third consecutive positive week at a record high.
Dow futures plunged 50 points. The S&P 500 and Nasdaq 100 futures contracts both fell around 0.1%.
Wall Street comes out of a winning week thanks to strong corporate earnings. The Dow blue chips gained more than 1% last week and closed on Friday at a record high. The S&P 500 rose 1.7% last week, also recording its third consecutive positive week and hitting an all-time high on Friday.
Out of the 117 Of the S&P 500 companies that have posted earnings to date, 84% have posted higher-than-expected numbers, according to Refinitiv. S&P 500 companies are expected to increase profits by around 35% in the third quarter.
“The rising tide of profits lifts all boats and fuels the bull market fire,” said Anu Gaggar, global investment strategist at Commonwealth Financial Network. “The third quarter earnings season has got off to a good start despite concerns about supply bottlenecks and labor shortages.”
Some of the biggest tech companies are expected to release their results this week, including Facebook, Alphabet, Microsoft, Amazon and Apple. A third of Dow companies are also expected to release quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.
The major averages all posted solid gains for October. The Dow Jones and S&P 500 are both up more than 5%, while the Nasdaq Composite has climbed 4.4% since the start of the month.
The energy sector, which is up 11% this month, led the October rally across the market. Industrials, real estate, materials and financial services all grew by at least 7% over the same period.
“Transportation, consumer discretionary and large-cap technology have pushed the market higher over the past two weeks, signaling that growth concerns about supply chain constraints are starting to fade,” he said. said Lindsey Bell, chief investment strategist at Ally Invest.