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US STOCKS-Futures dip ahead of earnings-packed week; Boeing surges
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US STOCKS-Futures dip ahead of earnings-packed week; Boeing surges
Oct 22, 2024 12:57 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 after offering new wage deal

*

Humana climbs after report Cigna ( CI ) resumes merger talks

*

Futures down: Dow 0.22%, S&P 500 0.30%, Nasdaq 0.51%

(Updated at 06:46 a.m. ET/1046 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 21 (Reuters) -

Wall Street futures dipped on Monday as investors braced for

a busy week of major earnings reports that could either support

or disrupt the market's ongoing rally.

Boeing ( BA ) jumped 3.6% in premarket trading on news that

workers could vote on a new deal to end a costly five-week-long

strike. The planemaker is scheduled to report results later this

week.

Dow E-minis were down 94 points, or 0.22%, S&P

500 E-minis were down 17.5 points, or 0.30% and Nasdaq

100 E-minis were down 104 points, or 0.51%.

Benchmark 10-year Treasury yields rose to more than 4.12%,

pressuring growth stocks such as Apple ( AAPL ) and Microsoft ( MSFT )

, which edged lower 0.5% and 0.3%, respectively.

Among S&P 500 companies, 114 are expected to report

quarterly earnings this week, including International Business

Machines ( IBM ), Tesla and Coca-Cola. Results

from Texas Instruments ( TXN ) will turn the spotlight on the

chip sector.

As of last close, 83.1% of the S&P companies that have

reported so far have beaten earnings estimates versus the 79.1%

average of the previous four quarters, according to LSEG data.

A fairly solid start to this earnings season, upbeat

economic data and continued optimism around Federal Reserve rate

cuts have helped indexes rally higher, with the S&P 500 inching

closer to crossing the 6,000-mark milestone for the first time.

The Dow Jones Industrial Average and the benchmark

index notched up record closing highs on Friday. Both

indexes, along with the Nasdaq, logged a sixth consecutive week

of gains in their best winning streak so far this year.

However, risks such as rising geopolitical tensions in the

Middle East, gains in Treasury yields and some volatility ahead

of the upcoming U.S. presidential election are pressuring

equities.

"Stock markets continue to withstand geopolitical turmoil

and uncertainty about the US election... the election is getting

closer and the uncertainty will in all likelihood remain at

least until election night," analysts at SEB said in a note.

In broader markets, trades expected to perform well if

Republican candidate Donald Trump wins in November were catching

a bid, as polls showed the former U.S. president's chances

improving. The U.S. dollar, bitcoin and gold gained

ground.

In other stocks, Spirit Airlines ( SAVE ) skyrocketed 42%

after the company reached an agreement to extend a debt

refinancing deadline by two months.

Humana gained 4.4% after a report said Cigna ( CI )

had resumed merger talks with the health insurer.

UPS edged 1.8% lower after Barclays downgraded

the parcel service provider to "underweight" from "equal

weight".

In economic data, home sales, flash PMI and durable goods

readings are due this week, as is the Federal Reserve's Beige

Book.

A number of central bank speakers are due to speak on the

day, including Fed officials Lorie Logan, Neel Kashkari, Jeffrey

Schmid and Mary Daly.

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