Strong Earnings Season Push SIFs Higher


U.S. stock index futures are advancing after Friday’s record highs.

Recent strength is linked to  mostly stronger than expected corporate quarterly earnings reports and despite supply-chain problems, tight labor markets and last week’s news that the Federal Reserve approved plans to start scaling back its bond-buying stimulus program.

A strong earnings season has helped push stock index futures to new highs. Approximately 82% of S&P 500 companies that have reported results this season have topped analysts’ earnings expectations, according to FactSet data.

Federal Reserve Chairman Jerome Powell will speak at 9:30 central time.

Despite central banks removing some accommodation, the dominant fundamentals remain supportive for stock index futures.


The U.S. dollar index is lower, and the euro currency is a little higher.

The Japanese yen is higher despite news that Japan cut its outlook on economic conditions for the first time in over two years after the coincident indicator index extended its decline in September, falling to the lowest level in a year. The index showing current economic conditions, compiled from data including factory output, employment and retail sales, fell a preliminary 3.8 points from the previous month to 87.5.


The 30-year Treasury bond futures are lower today after advancing sharply above a seven-day congestion pattern on Friday. The breakout to the upside took place in spite of mostly bearish news, which is a sign of longer term strength for futures.

On Friday, Kansas City Federal Reserve leader Esther George warned that the outlook for inflation laid out by Fed Chair Powell last Wednesday may not accurately describe the inflation outlook, with potential implications for monetary policy.

The Treasury will auction three-year notes.


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