MARKET SNAPSHOT: U.S. Stocks: Futures Inch Up As Big Earnings Week Kicks Off

By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- U.S. stock futures inched higher on Monday as investors geared up for earnings from more than a third of Dow components this week, but Europe stocks were dropping on bad news from a major German software maker.

Futures for the S&P 500 index (SPZ4) rose 4.6 points to 1,885.40, while those for the Dow Jones Industrial Average (DJZ4) add 45 points to 16,353. Futures for the Nasdaq-100 index (NDZ4) added 13.25 points to 3,817.50.

Stocks rallied on Friday, but Wall Street still closed out the week with losses, with both the Dow industrials (DJI) and the S&P 500 index (SPX) dropping 1%. The Nasdaq Composite Index (RIXF) lost 0.4%.

What investors want: What will it take to get market's confidence back after a tumultuous week of trading? For one, an earnings season that confirms the U.S. economy is still improving, said Société Générale analysts Patrick Legland and Daniel Fermon in a note on Monday.

But they said markets also need to see these two catalysts: More dovish central-bank talk and a stronger signal from European leaders. "Otherwise, the lack of coordinated policies and ECB (European Central Bank) constraints could continue to deter investors," said the analysts. Europe stocks were pitching south on Monday.

Economic calendar: Dallas Federal Reserve President Richard Fisher will be interviewed on CNBC at 8 a.m. Eastern on Monday, and Fed Governor Jerome Powell will give a speech on community banking to a St. Louis Fed webinar at 10 a.m. Eastern Time.

Apple after the bell: There are plenty of earnings to keep investors busy this week, though Monday is a relatively light day. Hasbro Inc.(HAS) and VF Corp. (VFC) will report ahead of the bell. More than 1/3 of Dow stocks to report this week

After the close Apple Inc. (AAPL), IBM Corp. (IBM) and Chipotle Mexican Grill Inc. (CMG) will report results. Apple is projected to post fiscal fourth-quarter earnings of $1.31 a share on sales of $40 billion, according to a consensus survey by FactSet. What to watch for in Apple's results Plus: More earnings expectations for Monday

Apple also starts rolling out its Apple Pay system on Monday, though The Wall Street Journal points out the biggest gap is department-store cards.

IBM says it will unveil "a major business announcement" Monday morning along with its third-quarter results. The Wall Street Journal says the company will pay Globalfoundries Inc. $1.5 billion to take over its chip operations.

Other markets: German stocks led fresh weakness in Europe on Monday after business software maker SAP SE (SAP) lowered its earnings outlook for the year. U.S.-listed shares were down 4% in premarket trade. (Read more about Europe's big stock movers here: http://www.marketwatch.com/story/sap-slides-nutreco-surges-europes-big-stock-movers-2014-10-20.)

In Asia, the Nikkei 225 index had a spectacular rebound, surging nearly 4%, which weakened the yen (USDJPY) and drove investors into the dollar. Gold(GCZ4) was flat, while oil prices(CLX4) inched higher.

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