Nasdaq, S&P 500 Futures Skyrocket As Market Eyes Another Weekly Gain — Apple, Amazon Rally On Earnings

• President Donald Trump has called on the Senate to terminate the filibuster custom to end the month-long government shutdown.
• The major averages appear on track to post their third consecutive weekly gains.
• On the economic front, the ISM-Chicago is scheduled to release its October Business Barometer Index at 9:45 a.m. ET.

U.S. stock futures firmed up early Friday, thanks to positive reactions to earnings from two big tech names, namely Apple (AAPL) and Amazon (AMZN). If the major averages end higher on Friday or don’t fall notably, they are on track to record their third straight week of gains.

In another development, President Donald Trump has called on the Senate to terminate the filibuster custom—a longstanding Senate tactic that delays or blocks votes on legislation by keeping debate open—in a bid to end the month-long government shutdown.  The Senate needs a supermajority of 60 of the 100 members to overcome a filibuster and pass legislation.

How Futures Are Trading

As of 5 a.m. ET on Friday, the Nasdaq 100 futures jumped 1.25%, the S&P 500 futures climbed 0.72%, and Dow futures added 0.12%, while the Russell 2000 futures edged up.

On Stocktwits, however, retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, turned ‘bearish’ early Friday from ‘neutral’ a day ago, and that toward the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, worsened to ‘extremely bearish’ from ‘bearish’ a day ago. The message volume on both streams stood at ‘high’ levels.

Commenting on the QQQ stream, a retail watcher said the ETF has “every sign of correction written all over it!” The ETF was on a record-setting spree before Thursday’s retreat.

How Markets Traded Thursday

Disappointing reactions to earnings from Meta Platforms and Microsoft, and profit-taking in artificial intelligence (AI) stocks following their recent gains, dragged the market on Thursday. Communication services, consumer discretionary, IT and material stocks came under significant selling pressure.

The SPY and the QQQ ETFs fell 1.10% and 1.53%, respectively, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell 2000 ETF (IWM) declined 0.29% and 0.76%, respectively.

Key Catalysts To Watch Out For

On the economic front, the ISM-Chicago is scheduled to release its October Business Barometer Index at 9:45 a.m. ET. Economists, on average, expect the index to remain below the ‘50’ level that marks expansion and contraction, but improve slightly to 42 from the September reading of 40.6.

Dallas Fed President Lorie Logan is scheduled to make a public appearance at 9:30 p.m. ET, and Cleveland Fed President Beth Hammack, as well as Atlanta Fed President Raphael Bostic, are due to speak at 12 p.m. ET.

Noteworthy names featured on the earnings calendar for the day include Aon (AON), AbbVie (ABBV), Chevron (CVX), ExxonMobil (XOM), Colgate-Palmolive (CP), Dominion Energy (D), and Charter Communications (CHTR).

How Other Markets Fared

Crude oil futures fell further early Friday, remaining on track to close the week lower, while gold futures stayed above the $4,000 level. The 10-year U.S. Treasury note yield rose further, advancing about 4.1%. The U.S. dollar ticked down against its major counterparts. Most major Asian markets saw lackluster sentiment, although the Japanese market rallied to a new high on the yen’s weakness and positive earnings.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Fed To End QT, Citing Ample Reserves, Liquidity: What Early Wind-Down Means For Market?

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