Wall Street Set for Higher Open as Investors Await Key Data and Earnings Amid Israel-Hamas Conflict, US

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Wall Street Set for Higher Open as Investors Await Key Data and Earnings Amid Israel-Hamas Conflict

Wall Street’s main indexes are poised to open higher on Monday as investors eagerly anticipate crucial economic data and major corporate earnings set to be released this week, providing insights into the state of the U.S. economy. Meanwhile, market participants continue to monitor the ongoing Israel-Hamas conflict, further adding to the cautious atmosphere.

Long-dated U.S. Treasury yields have risen as the United States seeks to prevent further escalation in tensions. Secretary of State Antony Blinken has arrived in Israel for talks following warnings from top U.S. officials about the potential worsening of the conflict.

Despite diplomatic efforts to arrange a ceasefire, Israel continues to launch airstrikes on Gaza. Residents in Hamas-ruled Gaza report that the overnight air strikes have been the most intense yet, with the anticipation of an imminent Israeli ground offensive.

On Friday, the S&P 500 and Nasdaq experienced declines due to deteriorating consumer sentiment data and concerns about the Middle East conflict. These factors overshadowed upbeat earnings reports from major U.S. banks.

Investors have shown some signs of relief, as efforts are now being focused on containing the conflict and preventing further regional implications. Market sentiment will heavily depend on the upcoming earnings reports, which will provide crucial indications of the current economic cycle and any potential concerns of a recession.

This week, investors are eagerly awaiting the earnings reports from Goldman Sachs, Bank of America, Morgan Stanley, Johnson & Johnson, Tesla, and Netflix, among others. The third-quarter earnings for S&P 500 companies are estimated to grow by 2.2% annually, as per data from LSEG. Impressively, out of the 32 S&P 500 companies that have reported results so far, 87.5% have surpassed expectations, surpassing the long-term average of 66.5%.

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Aside from earnings, investors are also keeping an eye on key economic data releases. Retail sales data for September and the Philly Fed Business Index for October are scheduled to be reported later this week.

Notably, the NY Fed’s Empire State index, which measures manufacturing activity in New York State based on current business conditions, fell to -4.60 in October, slightly better than the expected -7.

Further insights will come from speeches by Philadelphia Fed President Patrick Harker and Federal Reserve Chair Jerome Powell. Harker recently expressed his belief that the U.S. central bank has likely completed its rate-hiking cycle. Meanwhile, Chicago Fed President Austan Goolsbee has highlighted that the slowdown in U.S. inflation is not just a momentary blip, but rather an undeniable trend.

In premarket trading, Dow e-minis rose by 185 points, or 0.55%, S&P 500 e-minis were up 19.25 points, or 0.44%, and Nasdaq 100 e-minis increased by 40.25 points, or 0.27%.

Some notable stock movements include Nvidia, which fell 0.9% in premarket trading following a report that the U.S. would take steps to restrict American chipmakers from selling semiconductors to China, particularly in an effort to curtail AI chip exports. Pfizer also experienced a 0.3% decline after lowering its full-year revenue forecast by 13% on Friday. Moderna, Pfizer’s rival, suffered a 4.4% drop in stock value.

On the other hand, Lululemon Athletica saw a 6.0% increase as the sports apparel maker is set to join the S&P 500 index this week, taking the place of Activision Blizzard. Additionally, Albemarle advanced 2.1% after the world’s largest lithium chemicals maker withdrew its proposed A$6.6 billion ($4.16 billion) buyout bid for Australian lithium producer Liontown Resources.

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As the day unfolds, investors eagerly anticipate the key economic data and corporate earnings that will shape market sentiment. The outcome of the Israel-Hamas conflict remains uncertain, and it will be crucial to prevent further escalation. Market participants hope that containment efforts will prevent the conflict from impacting other regions and contribute to a stable market environment.

Frequently Asked Questions (FAQs) Related to the Above News

What are investors eagerly awaiting this week?

Investors are eagerly awaiting crucial economic data and major corporate earnings set to be released this week.

Why is the ongoing Israel-Hamas conflict causing cautiousness among market participants?

The ongoing Israel-Hamas conflict is causing cautiousness among market participants because it has the potential to escalate tensions and impact regional stability, which could have implications for the global market.

What impact did deteriorating consumer sentiment data and concerns about the Middle East conflict have on the S&P 500 and Nasdaq on Friday?

Deteriorating consumer sentiment data and concerns about the Middle East conflict led to declines in the S&P 500 and Nasdaq on Friday.

What percentage of S&P 500 companies have surpassed earnings expectations so far?

Out of the 32 S&P 500 companies that have reported results so far, 87.5% have surpassed expectations, surpassing the long-term average of 66.5%.

Which companies' earnings reports are investors eagerly awaiting this week?

Investors are eagerly awaiting the earnings reports from Goldman Sachs, Bank of America, Morgan Stanley, Johnson & Johnson, Tesla, and Netflix, among others.

What key economic data releases are investors keeping an eye on?

Investors are keeping an eye on retail sales data for September and the Philly Fed Business Index for October, among other key economic data releases.

How did the NY Fed's Empire State index perform in October?

The NY Fed's Empire State index fell to -4.60 in October, slightly better than the expected -7, indicating a decline in manufacturing activity in New York State.

What have Philadelphia Fed President Patrick Harker and Chicago Fed President Austan Goolsbee recently highlighted?

Patrick Harker expressed his belief that the U.S. central bank has likely completed its rate-hiking cycle, while Austan Goolsbee mentioned that the slowdown in U.S. inflation is not just a momentary blip but rather an undeniable trend.

How did the stock market futures perform in premarket trading?

In premarket trading, Dow e-minis rose by 185 points, S&P 500 e-minis were up 19.25 points, and Nasdaq 100 e-minis increased by 40.25 points.

What notable stock movements occurred in premarket trading?

Nvidia fell 0.9% following reports of potential restrictions on American chipmakers selling semiconductors to China, Pfizer declined 0.3% after lowering its full-year revenue forecast, Moderna suffered a 4.4% drop in stock value, Lululemon Athletica saw a 6.0% increase as it joins the S&P 500 index this week, and Albemarle advanced 2.1% after withdrawing its proposed buyout bid for Liontown Resources.

What are market participants hoping for in relation to the Israel-Hamas conflict?

Market participants hope that containment efforts will prevent the conflict from impacting other regions and contribute to a stable market environment.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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