Stock futures are flat ahead of the first trading day in November

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 27, 2021.

Brendan McDermid | Reuters

US stock futures rose slightly in overnight trading on Sunday as investors prepared for the first trading session in November.

Market participants are preparing for another week of corporate earnings, a key meeting of the Federal Reserve on Wednesday and the October job report.

Dow futures rose 80 points. The S&P 500 futures rose 0.25% and the Nasdaq 100 futures rose 0.25%.

Shares closed in October on Friday, and all three major averages closed at record highs. The S&P 500 and Nasdaq achieved their best months since November 2020.

The Dow Jones Industrial Average rose 5.8% in October. The S&P 500 rose 6.9% last month and the technology-focused Nasdaq Composite rose 7.3% in October. The month marked a recovery from September, when the major indices fell.

The corporate earnings season dominated October amid solid earnings even with concerns in the global supply chain. About half of the S&P 500 companies have reported quarterly results, and more than 80% of them beat the earnings estimates from Wall Street analysts, according to Refinitiv.

As the earnings season continues this week, investors will also monitor the Federal Reserve’s two-day meeting on Tuesday and Wednesday. The central bank is widely expected to announce that it will begin settling its $ 120 billion in monthly bond purchases and complete the program by the middle of next year.

Investors will also look for the Fed’s comments on rising prices, as inflation has been at its highest level in 30 years.

“The Fed is part of a global move to remove accommodation, and the market is running right past it,” said Peter Boockvar, CIO of the Bleakley Advisory Group. “In a way, the stock market is playing a game of chicken with this inflationary movement and interest rates and the reaction of the central banks.”

The second major event of the week will be the October employment report from October Friday, which could show some improvement in employment as new cases of Covid-19 continued to decline.

“The change in non-agricultural wages is expected to be a robust 450,000, which is likely to lower unemployment again,” said Jim Paulsen, chief investment strategist for Leuthold Group. “The key to the report will be how much wage inflation rises and whether the employment rate finally rises after so many recently came from extended unemployment benefits.”

—CNBC’s Patti Domm contributed to this report.

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