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US STOCKS-Futures climb as markets await megacap earnings, US election
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US STOCKS-Futures climb as markets await megacap earnings, US election
Nov 3, 2024 12:29 PM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Boeing ( BA ) gains on stock offering

*

Energy shares track crude prices lower

*

169 S&P 500 companies to report this week

*

Futures up: Dow 0.44%, S&P 500 0.51%, Nasdaq 0.65%

(Updated at 7:15 a.m. ET/1115 GMT)

By Lisa Pauline Mattackal

Oct 28 (Reuters) - U.S. stock index futures rose on

Monday, poised to recoup some losses following a turbulent

trading week, as investors prepared for key corporate earnings

and the final phase before the Nov. 5 presidential election.

Dow E-minis were up 186 points, or 0.44%, S&P 500

E-minis were up 30 points, or 0.51%, and Nasdaq 100

E-minis were up 134.25 points, or 0.65%.

The main focus was on events in the week ahead, most notably

corporate results, with around 169 S&P 500 companies scheduled

to report through the week.

That includes the bulk of the "Magnificent Seven" group of

megacap technology giants that have been Wall Street's biggest

drivers this year, as equities rallied to all-time highs.

EV maker Tesla surged after its upbeat earnings,

lifting optimism that other megacaps could meet investors' lofty

expectations.

Alphabet rose 1.8%, Meta Platforms ( META ) was up

1.1%, Microsoft ( MSFT ) was 0.8% higher, Apple ( AAPL ) gained

0.2% and Amazon.com ( AMZN ) added 0.8% in premarket trading,

ahead of their results later in the week.

The companies jointly make up about 23% of the S&P 500's

weightage, and investor reaction to their results will be a key

determining factor in whether indexes continue to climb or

retreat.

AI-chip heavyweight Nvidia ( NVDA ) rose 1.1%. It had

briefly become the world's most valuable company on Friday, with

its market capitalization creeping ahead of Apple's ( AAPL ).

Israel's response to an Iranian missile attack earlier this

month focused, so far, on missile factories and other sites near

Tehran, rather than on refineries or nuclear targets, assuaging

some worries about the situation in the region.

An uptick in yields in the past week unsettled equities and

saw the S&P 500 and the Dow Jones Industrial Average

snap their six-week winning streaks as investors

increasingly expect the Federal Reserve to be less dovish than

initially expected with data pointing to continued strength in

the U.S. economy.

Economic data due this week will be crucial for that

assessment, with the release of the Personal Consumption

Expenditures index - the Fed's preferred inflation measure - as

well as the first release of third-quarter GDP data and the

crucial nonfarm payrolls report.

Investors all but expect a 25-basis point rate reduction at

the U.S. central bank's next meeting, according to CME's

FedWatch.

"Even though we strongly favor the Fed cutting two more

times this year, this week's data may not substantially alter

the pricing of just 39 basis points of further Fed easing this

year," ING analysts said.

Focus was also on the Nov. 5 U.S. presidential election,

with markets more broadly pricing in a second Donald Trump

administration.

On Monday, markets seemed largely undeterred by rising

Treasury yields. The yield on the benchmark 10-year U.S.

Treasury note rose as high as 4.292%.

Futures tracking the economically sensitive small-cap

Russell 2000 jumped 0.5%.

Boeing's ( BA ) shares rose 1% after the planemaker launched

a stock offering that could raise up to $19 billion in a bid to

shore up its finances amid an ongoing worker strike.

Shares of oil companies fell as crude prices slumped 5%,

with Exxon Mobil ( XOM ) losing 2% and Occidental Petroleum ( OXY )

dropping 2.4%.

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