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Dow Futures Rise 410 Pts; Rebound Continues Ahead of JOLTs Data

Published 10/04/2022, 06:39 AM
Updated 10/04/2022, 07:00 AM
© Reuters

© Reuters

By Peter Nurse    

Investing.com -- U.S. stocks are seen opening firmly higher Tuesday, continuing the previous session’s broad rally as investors enter the year’s final quarter with a degree of cautious optimism. 

At 07:00 ET (11:00 GMT), the Dow Futures contract was up 410 points, or 1.4%, S&P 500 Futures traded 62 points, or 1.7%, higher and Nasdaq 100 Futures climbed 230 points, or 2.1%.

The main equity indices closed sharply higher Monday, with the blue-chip Dow Jones Industrial Average gaining over 700 points, or 2.7%, its best day since June 24. The broad-based S&P 500 rose 2.6%, its strongest day since July 27, and the Nasdaq Composite gained 2.3%.

Stocks have been helped by the fall in U.S. Treasury yields after the publication of weaker-than-expected manufacturing data, raising hopes that the Federal Reserve will ease back on its monetary tightening as economic growth slows.

There are more Fed policymakers due to speak Tuesday, and investors will also study new data from the Job Openings and Labor Turnover Survey for clues about the health of the labor market ahead of Friday’s keenly-anticipated official jobs report.

Third quarter earnings are about to start rolling in as October progresses, but fourth quarter forecasts will be far more important to the market’s future direction, according to S&P Global.

“October brings earnings, with Q3 estimates already declining 7%, and the whisper numbers a bit more than that,” S&P Global (NYSE:SPGI) said, in a note. “The larger concern (than the actual numbers for Q3, when consumers were still spending) is the guidance for Q4, as consumers have pulled back, inflation continues and the Fed’s 'adjustments' will have a more substantial impact.”

Rivian Automotive (NASDAQ:RIVN) stock jumped over 7% premarket after the electric vehicle maker said it produced 7,363 vehicles in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000 units.

Oil prices edged higher Tuesday, extending the previous session’s positive tone as the market looks forward to Wednesday’s OPEC+ meeting amid expectations of a substantial cut in crude production.

The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are scheduled to meet tomorrow, and speculation is rife the cartel will agree to an output cut of more than one million barrels a day. 

The American Petroleum Institute unveils its weekly estimate of U.S. crude stocks later in the session.

By 07:00 ET (11:00 GMT), U.S. crude futures traded 0.8% higher at $84.27 a barrel, while the Brent contract rose 1% to $89.70. Both benchmarks gained more than 4% on Tuesday, the largest daily gain since May.

Additionally, gold futures rose 1% to $1,718.55/oz, while EUR/USD traded 0.7% higher at 0.9895.

 

Latest comments

trap for new investor
trap for new investor
trap for new investor
Bad news is good news.
Weeks of losses magically vanish in two days.  It's yet another miracle in the US Ponzi Scheme, BIGGEST INVESTMENT JOKE IN THE WORLD.
So true
So false.  SPX is back up to Sep 23rd level.  That's not "weeks", nor magic nor miracle.
Stock market will slump more 30% by end year
  "now" and "holiday bump" is BEFORE New Year.
JOLTs could be 1m or 100m, I reckon the market will behave the same way today - "Soars on Job opening numbers" or "Shrugs off Job opening numbers".
coordinated trading between all the big players so there is no one with decent size pocket playing the other way. it's very casual day in the stock market where suddenly overnight, sometime even at a particular min around 2PM, that the entire market moves 1 way nonstop with no news. lol.
Williams 10/3/2022 - doesnt sound like a fed pivot any time soon. "There are other factors in our favor. First, the Fed's commitment to achieve and sustain 2 percent inflation is a now bedrock principle. This was not always the case. It's only been 10 years since the FOMC defined 2 percent inflation as its longer-run goal.7 This transparency about our objectives provides a "North Star" for policy decisions and communications. It likewise improves the public's understanding of our goals and actions."
Silver up 9 % in a few days and still going up.
hard to understand the optimism.
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