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Dow futures rise slightly after it notches third winning week in a row

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Traders are seen working on the New York Stock Exchange’s floor (NYSE) in New York City on October 15, 2021.

Spencer Platt | Getty Images

After the record-breaking Dow Jones Industrial Average week, which saw its third positive week consecutively, stock futures edged up in morning trading on Monday

Dow futures rose by 18 points S&P 500 futures and Nasdaq 100 futures traded in mildly positive territory.

Wall Street’s week ended with a win thanks to corporate earnings. Last Friday, the blue-chip Dow rose more than 1% and ended at a new record. The S&P 500 rallied 1.7% last week, also posting its third straight positive week and hitting an all-time high Friday.

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The 117 companies in the S&P 500 that have reported earnings to date, 84% posted numbers that beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.

Anu Gaggar from Commonwealth Financial Network, global investment strategist and said that the rising tide of earnings was lifting all boats and fueling the bull market fire. “Despite concerns over supply shortages and labour shortages, the 3Q earnings season has been a good start.

The earnings of some of the largest technology companies, such as Alphabet and Microsoft, will be reported this week. A third of the Dow companies also is set to release quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.

The major averages all saw solid increases for October. The Dow and the S&P 500 are both up more than 5%, while the Nasdaq Composite has climbed 4.4% month to date.

The energy sector is leading the wider market rally, up 11% in October. Over that same time, the stock market, finance, real estate and material have all increased by at least 7.7%.

According to Lindsey Bell (chief investment strategist at Ally Invest), “Transports and consumer discretionary have driven the market higher in recent weeks. This signals that supply chain concerns are starting to fade.”

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