US stock index futures were little changed during Sunday night trade after the S&P released its best week 2022, boosted by quarterly earnings reports and a better-than-expected January jobs report.
Futures contracts linked to the Dow Jones Industrial Average rose 0.08%. S&P 500 futures were up 0.11%, while Nasdaq 100 futures were up 0.1%.
The S&P and Nasdaq Composite rose on Friday for their fifth upbeat sessions in the last six, and the indices also posted their best week since December. The Dow slipped 0.06% on Friday but still managed to post a 1.05% gain for the week. The Russell 2,000, meanwhile, posted its first positive week in five and its best week of 2022.
Earnings reports and a better than expected January jobs report pushed the major averages higher. The Ministry of Labor announced on Friday 467,000 jobs were added in January, well earlier than the 150,000 economists polled by Dow Jones had expected.
“The rise in payrolls was a welcome sign for the economy,” said Peter Essele, head of portfolio management at the Commonwealth Financial Network. “The hike reassured investors that rate hikes are imminent, with the first occurring at the March meeting.”
Last week’s gains follow a bumpy start to the year for the major averages, as rising interest rates prompted investors to dump growth stocks in favor of value-oriented areas of the market.
To date, 56% of S&P 500 companies have released quarterly earnings, with 79% beating earnings estimates and 77% beating sales expectations.
However, individual performance varied. Amazon shares gained 13.5% on Friday, while Snap gained 58.8%. Facebook parent Meta fell 26% on Thursday following its quarterly update. The social media company is coming off its worst week on record.
“Overall, investors continue to sell the news,” Wells Fargo said in a note to clients on Friday. “We come late in the cycle. The market is becoming more selective. The tide will no longer lift all boats and the market will become less and less forgiving.”
The company said forward-looking investors should cut losses quickly and focus on companies’ margins rather than sales or earnings numbers.
Another busy earnings week is upon us, with 76 S&P 500 companies set to report earnings. Three Dow components will provide quarterly updates, including Disney and Coca-Cola. Amgen, Take-Two Interactive and On Semiconductor are among the names set to report earnings on Monday.
Later in the week, investors will be watching key inflation data: the CPI on Thursday, followed by the University of Michigan Consumer Sentiment Survey on Friday.