Dow Jones Industrial Average futures rose Monday to start a busy week for corporate earnings. Futures tied to the blue-chip index climbed 147 points, or 0.4%. S&P 500 futures climbed 0.3%, while Nasdaq-100 futures added 0.1%. Earnings season heats up this week with 11% of the S&P 500 slated to report results. Some notable names on deck this week include Johnson & Johnson, Bank of America, Netflix and Tesla. Those results will come after a solid start to the reporting period. JPMorgan Chase, Wells Fargo and UnitedHealth rose Friday after posting their latest quarterly results. Some on Wall Street are bracing for more volatility into year end as yields and oil prices rise, inflation remains sticky, and conflict ensues in the Middle East. But a focus on earnings and what the Federal Reserve will do with interest rates can give investors optimism in the short term, according to Barclays analyst Ajay Rajadhyaksha. “We expect bonds/equities to range-trade near term,” Rajadhyaksha said in a note to clients Monday. “Bond volatility and Middle East tensions are a drag on risky assets, but should be offset by earnings and dovish Fedspeak.” Over the weekend, Israel’s military continued urging residents to evacuate northern Gaza amid a widely anticipated ground invasion. Meanwhile, U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) said Sunday that the Senate would work to quickly push through a military aid package to assist Israel as it battles Hamas. Stocks are coming off a mixed session and week. The S&P 500 advanced 0.5% for its second consecutive positive week, while the Dow Jones Industrial Average gained 0.8%. The Nasdaq Composite lost about 0.2% for the week and fell 1.23% during Friday’s session, while the S&P dipped 0.5% and the Dow inched up 0.12%. Treasury yields were higher Monday, with investors assessing the U.S. economic outlook as uncertainty about the path ahead for monetary policy, as well as geopolitical concerns, continued. The yield on the 10-year Treasury was more than 5 basis points higher at 4.681%. The 2-year Treasury yield was around flat at 5.058%. Asia-Pacific markets started the week on soft footing, with stocks in Tokyo leading declines as investors look ahead to key economic data from China and Japan this week. In Australia, the S&P/ASX 200 fell 0.35% to 7,027.90, while New Zealand’s S&P/NZX 50 Index closed 0.71% lower at 11,185.08. Japan’s Nikkei 225 closed 2.03% lower at 31,659.03, while the Topix dropped 1.53% to 2,273.54. South Korea’s Kospi index ended the session with falls of 0.81% at 2,436.24. Hong Kong’s Hang Seng index fell 1% in the final hour of trading, while China’s benchmark CSI 300 index ended 1% lower at 3,626.60. Brent oil futures steadied above $90 a barrel on Monday after passing the threshold on Friday, as investors waited to see if the Israel-Hamas conflict draws in other countries. Brent futures were down 7 cents, or 0.1%, at $90.82 a barrel. U.S. West Texas Intermediate (WTI) crude fell 10 cents, or 0.1%, to $87.79 a barrel. Both benchmarks climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%, as investors priced in the possibility of a wider Middle East conflict. Gold held above the key $1,900 ceiling on Monday, despite a drop in prices due to technical selling following a fierce 3% rally in the previous session as the raging Israel-Hamas war sent investors scuttling to the safe-haven bullion. Spot gold dipped 0.9% to $1,914.30 per ounce and U.S. gold futures dropped 0.7% to $1,927.60. Gold, viewed as a safe investment during uncertain times, hit $1,934.82, its highest since Sept. 20, earlier in the session. That was after it surged 3.4% on Friday in its biggest one-day rise in seven months.
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