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Inventory futures are falling firstly of the week

Traders work on the trading floor of the New York Stock Exchange.

NYSE

Stock futures fell Sunday evening after closing near the flat line on Friday after investors shook off concerns over a labor market report released on Friday that was much weaker than expected.

The Dow Jones Industrial Average futures fell 71 points, or 0.21%. The futures on the S&P 500 and Nasdaq 100 lost 0.28% and 0.33%, respectively.

In Friday's regular trading session, the Dow slipped 8.69 points to 34,746.25 points. The S&P 500 lost 0.2% to 4,391.34. The Nasdaq Composite fell 0.5% to 14,579.54.

Markets reacted to a disappointing jobs report that initially sent down major averages, although investors' concerns subsided after digging through the data and realizing that things may not be as bleak as the data initially suggested. The Department of Labor reported Friday that the economy created only 194,000 jobs in September, compared to the Dow Jones estimate of 500,000.

"The three-month moving average for non-farm payrolls is a solid 550,000," said Joe LaVorgna, chief economist for America at Natixis CIB, in a press release. "At this rate, employment will make up for its pandemic-related losses by July next. The labor market recovery is so advanced that the Fed is set to begin the tightening next month, which is expected to be completed in June next year."

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Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance, added that it would take an "extremely bad" job report. I don't think it's bad enough to stop them. "

In addition, the unemployment rate itself fell to 4.8%, much lower than the economists forecast.

This week the big banks will publish their results for the third quarter. JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are expected to report starting Wednesday. Delta Airlines and Walgreens Boots Alliance are also on deck.

According to FactSet, analysts estimate earnings growth of 27.6% for the S&P 500 in the third quarter and a price increase of 15% for the index over the next 12 months. However, the financial sector is likely to see the smallest gain, as it had the smallest upward difference between the bottom-up target and the closing price on October 6th.

No economic data is planned for Monday.

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