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Boeing ( BA ) gains on stock offering
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Energy shares track crude prices lower
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169 S&P 500 companies to report this week
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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%.