(RTTNews) - The major U.S. index futures are pointing to a modestly higher opening on Monday, with the major averages poised to rebounding from the previous session's slide. In the absence of economic data to digest, the markets may focus on earnings, which have so far been bordering on the positive. Commodity prices are pulling back slightly, reflecting apprehension among traders against the backdrop of their recent run up.

U.S. stocks snapped a 2-seession winning streak in the week ended October 23rd despite earnings largely coming in better than expected. Financial, biotechnology, transportation and airline stocks came under significant selling pressure.

Last Monday, the major averages advanced sharply, aided by strong earnings, with the Dow ending the session at a new closing high for the year. However, the markets largely ignored upbeat earnings on Tuesday and instead focused on a mixed housing market report and consequently, ended moderately lower.

Profit taking continued to weigh on the markets on Wednesday, as the major averages extended their declines. The equity market decline came amid a sharp rise in oil prices and the release of the Beige Book, which showed conditions are either stabilizing or modestly improving. Despite the release of a job market report that showed a bigger than expected increase in weekly jobless claims on Thursday, the markets advanced steadily throughout the session, ending notably higher. Turning a blind eye to strong earnings from some major companies and a fairly positive housing report, the major averages ended lower on Friday.

For the week, the Dow Industrials ended down 0.24% and the S&P 500 Index fell 0.74%, while the Nasdaq Composite Index lost 0.11%.
Among the sector indexes, the NYSE Arca Airline Index fell 7.03%, the NYSE Arca Biotechnology Index receded 5.79%, the Dow Jones Transportation Average declined 5.42% and the NYSE Arca Securities Broker/Dealer Index slipped 4.01%.

Currency, Commodity Futures

Crude oil futures are receding $0.26 to $80.24 a barrel after advancing for the fourth straight week in the week ended October 23rd, when oil rose over 1% to $80.50 a barrel. The November futures, which expired on Wednesday, rallied last Monday, rising over $1-a-barrel, only to recede on Tuesday, although moderately, as profit taking led to weakness following 8 straight sessions of gains.

The December futures, which began trading as the front-month contract on Wednesday, jumped by over $2-a-barrel, helped by a weakening dollar and the EIA's oil report, which showed a draw down in distillate and gasoline inventories.

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