Stock market news live updates: October 18, 2022

U.S. equity futures pushed forward for another day, extending a positive start to the week as earnings season sets into high gear.

Futures tied to the S&P 500 (^GSPC) rose 1.3%, while futures on the Dow Jones Industrial Average (^DJI) added 300 points, or 1%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) advanced 1.6%.

The moves in pre-market trading Tuesday come after all three major averages rallied in the previous session, with the S&P 500, Dow, and Nasdaq notching gains of 2.7%, 1.9%, and 3.4%, respectively.

“As we continue to remind you, this kind of outsized move is not on its own historically indicative of either a healthy market or an investable low,” DataTrek Research Co-Founder Jessica Rabe said on a note.

The annual average number of days in which the S&P 500 gained more than 1% was 54 last year, while Monday’s bounce brings the year-to-data tally of such gains to 100 – an important threshold the benchmark index has only reached seven other years in the past six decades: during the Saudi oil embargo, the 2000 Dotcom Bubble, the 2008 Global Financial Crisis, and 2020’s pandemic crash.

With inflows to stocks near a record last week, investors have been ramping up bets that a market bottom is in. But many Wall Street strategists have argued that the optimism is premature, particularly as what’s expected to be a murky earnings season gets underway.

Bank of America’s global fund manager survey out Tuesday morning said 91% of respondents say corporate earnings are unlikely to rise 10% or more in the next year, the highest share of investors in the survey’s history – a sign of further downside for forward earnings per share estimates for the S&P 500 index.

As such, BofA analysts deemed any indication that the end of the equity rout is near merely “tasty morsels for another bear rally,” adding that the institution projects a “big low” and subsequent “big rally” in the first half of 2023, when the Federal Reserve is expected to change course and start cutting rates.

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This month’s survey “screams macro capitulation, investor capitulation, start of policy capitulation,” strategists led by Michael Hartnett wrote.

Tuesday will keep investors busy, with earnings due out from companies including Goldman Sachs (GS), Johnson & Johnson (JNJ), Hasbro (HAS), Netflix (NFLX), and United Airlines (UAL).

Goldman Sachs is the last of the country’s six megabanks to unveil results on Tuesday. Despite better-than-feared results from some names in financials Monday, the banking industry has reported a year-over-year earnings decline of 13% for the third-quarter, driven primarily by increased provisions for loan losses to prepare for a possible recession. Wall Street’s big banks are bellwethers of the U.S. economy and typically set the tone for the earnings season.

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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