Stock futures were relatively stable on Monday night as investors prepared for significant corporate earnings releases from prominent tech companies. Futures linked to the major indices such as the Dow Jones Industrial Average and the S&P 500 showed only minor fluctuations, with Dow futures slipping just 35 points, slightly below flat. Meanwhile, Tesla shares dropped around 6% following the automaker's revised full-year guidance, which fell short of its previously set range. In contrast, VF Corporation, the company behind North Face, saw its shares jump by 23% after reporting results that exceeded expectations.
These market movements occurred after a positive session on Wall Street, where the three major indexes saw gains. Remarkably, the Dow Jones broke a five-day losing streak, while the Nasdaq Composite achieved its eighth positive session in the last nine trading days. Investors seemed to appreciate a relatively calm geopolitical landscape, as anticipated disruptions from weekend airstrikes by Israel towards Iran did not impact energy facilities, contrary to some fears. However, equity gains were tempered as Treasury yields began to rise.
"On the one hand, current macro conditions appear very favorable, characterized by resilient growth, disinflation, ongoing stimulus, and relatively healthy earnings," Adam Crisafulli, founder of Vital Knowledge, stated. "However, stock valuations remain high, and the increasing yields present a potential headwind."
This week's earnings reports promise to be busy, with major companies scheduled to disclose their results on Tuesday. DuPont and Pfizer will report before the market opens, followed by Ford, Lyft, and Airbnb after the closing bell. Moreover, tech giants such as Microsoft and Alphabet are set to release their earnings on Wednesday, with Amazon reporting on Thursday.
From an economic standpoint, investors will closely follow Tuesday's job openings and labor turnover data, which are part of a series of reports providing new insights into the job market's strength. In addition, updates on housing prices and consumer confidence are expected on the same day. Meanwhile, Bitcoin's price briefly surpassed the $70,000 mark as market participants readied themselves for the earnings announcements and counted down to the U.S. presidential election scheduled for next week. Bitcoin's latest price stood about 3% higher at $69,925.00, according to Coin Metrics, having peaked at $70,207.02 around 6:00 p.m. Eastern Time on Monday.
Optimism is swelling as next week's U.S. presidential election approaches, with Bitcoin maintaining a narrow trading range between $55,000 and $70,000. It may be on the brink of breaking out, buoyed by upcoming influential events like the election on November 5 and a Federal Reserve rate policy decision on November 7. Among stocks making significant moves, Palantir rose about 10% at one point on Monday, ahead of its earnings report on Wednesday, potentially extending its recent winning streak. Known for being a high-beta play on Bitcoin's price movements, Palantir ended the Monday trading session with nearly a 9% gain, marking its highest close since March 15, 2000.
Bitcoin itself continues to flirt with the $70,000 threshold, up over 2% at $69,502.40 in recent trades. Should this upward trend continue, it would represent the stock's eighth consecutive weekly gain, its longest rally since a notable 11-week winning streak that concluded in October 2010. During this period, MicroStrategy shares have surged by 125%. Such movement in stocks plays out as futures tied to the Dow, S&P 500, and Nasdaq 100 remained mostly unchanged shortly after 6 p.m. ET.
