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UnitedHealth ( UNH ) falls after Q3 results
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Johnson & Johnson ( JNJ ) down following results
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Banks broadly gain after earnings
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Boeing ( BA ) up after it lines up $35 bln in funds
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Futures: Dow down 0.03%, S&P 500 up 0.02%, Nasdaq flat
(Updated at 8:30 a.m. ET/1230 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 15 (Reuters) -
Futures pointed to a subdued open for Wall Street's main
indexes on Tuesday, as investors took a breather after a rally
in the previous session and parsed a mixed set of quarterly
results from companies such as UnitedHealth ( UNH ) and Bank of America ( BAC ).
Losses in semiconductor companies and oil stocks also
weighed on sentiment, with AI-darling Nvidia ( NVDA ) down 0.7%
in premarket trading following a record high close on Monday,
after a report the U.S. is considering limiting exports of
advanced artificial intelligence chips from the company and
other U.S. peers to some countries.
Shares of Advanced Micro Devices ( AMD ) lost 1%.
Meanwhile, oil companies tumbled, with Exxon Mobil ( XOM )
and Occidental Petroleum ( OXY ) down 2.7% and 3%,
respectively, as crude prices dropped 4%.
Among a slew of earnings, health insurer UnitedHealth ( UNH )
dropped 3.7% after reporting a surge in medical costs in
the third quarter. Johnson & Johnson ( JNJ ) also reversed
course to fall 1%, despite lifting its annual profit and sales
forecast.
Dow E-minis were down 12 points, or 0.03%, U.S.
S&P 500 E-minis were up 1.25 points, or 0.02%, Nasdaq
100 E-minis were up 0.75 points, or flat.
"Nothing has really happened just yet to offer any good
guidance for investors," said Sam Stovall, chief investment
strategist at CFRA Research.
On a brighter note, financial shares gained ground after
several major banks reported results, adding to optimism around
the sector after a set of reports from institutions including
JPMorgan Chase ( JPM ) kicked off the third-quarter reporting
season on an upbeat note last week.
Bank of America ( BAC ) jumped 2% after beating
third-quarter
profit
estimates, Goldman Sachs ( GS ) was up 2.9% as its profit
rose on a continued boost from
investment banking, while Charles Schwab ( SCHW ) soared
9.4% after beating estimates.
"The financial sector (is) experiencing upward revisions
to third-quarter earnings estimates, but all that's happening is
that it's going from a low single digit gain to a mid-single
digit gain - certainly not knocking the ball out of the park,"
Stovall said.
A number of S&P 500 companies are scheduled to report
results throughout the week, which will help investors gauge the
health of the U.S. economy. Large companies will also need to
justify their expensive stock valuations, particularly in the
tech sector, where valuations have grown increasingly inflated
in the past year.
All three major indexes jumped on Monday, with the S&P
500 and Dow Jones notching record highs for the
second consecutive session.
The Dow closed above the 43,000-mark for the first time,
while the benchmark S&P 500 is nearing the psychologically
significant 6,000 level.
Boeing ( BA ) rose 1.1% after the planemaker filed to raise
up to $25 billion through a stock and debt offering and entered
into a $10 billion credit agreement amid a crippling strike and
upcoming debt maturities.
Traders are pricing in about an 88% chance the Fed will
cut rates by 25 basis points in November and a slight
probability it will leave rates unchanged, according to CME's
FedWatch.
Speeches from Federal Reserve officials Adriana Kugler, Mary
Daly and Raphael Bostic are also on deck, while economic data
including monthly retail sales figures are due on Thursday.