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JD.com gains on new share repurchase program
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Paramount Global ( PARAA ) slips after Bronfman abandons bid
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Hershey slips on rating downgrade
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Futures off: Dow 0.07%, S&P 500 0.06%, Nasdaq 0.02%
(Updated at 07:25 a.m. ET/ 1125 GMT)
By Johann M Cherian and Purvi Agarwal
Aug 27 (Reuters) - U.S. stock index futures were muted
on Tuesday ahead of highly anticipated results from Nvidia ( NVDA ) and
crucial economic data expected later in the week.
The benchmark S&P 500 and the Nasdaq took a
pause from last week's rally on Monday as investors sold
tech-related stocks and shifted their focus to the upcoming
earnings report from AI chip firm Nvidia ( NVDA ).
Nvidia's ( NVDA ) shares, which led a recent bull-market rally, were
marginally up in premarket trading ahead of the company's
results on Wednesday, where it is likely to report quarterly
revenue that more than doubled and even a slight miss could hurt
shares.
Some investors are concerned about the chip designer's
ability to meet lofty expectations and have questioned the pace
of spending on artificial intelligence by Nvidia's ( NVDA ) largest
customers.
"Nvidia's ( NVDA ) earnings on Wednesday is by far the most important
event in global equities," said Peter Garnry, chief investment
strategist at investment platform Saxo.
"Given the underlying momentum in the AI industry and the
results we have seen from other companies in the AI ecosystem,
we lean in direction of Nvidia ( NVDA ) beating consensus and lifting
guidance for fiscal Q3 surpassing estimates."
Other chip stocks such as Broadcom ( AVGO ) fell 0.2%, while
Advanced Micro Devices ( AMD ) added 0.2%, after the
Philadelphia SE Semiconductor index notched a decline of
more than 2.5% on Monday.
At 7:24 a.m. ET, Dow e-minis were down 31 points,
or 0.07%, S&P 500 e-minis were down 3.25 points, or
0.06%, and Nasdaq 100 e-minis were down 3 points, or
0.02%.
The blue-chip Dow closed at a record high for the
first time in more than a month in the previous session and the
benchmark S&P 500 is about 0.8% from its own milestone.
Traders are now betting on either a 25-basis point or a
50-basis point rate cut in September. Odds of the former stand
at a higher 71.5%, while those of a 50-bps cut are at 28.5%,
according to CME Group's Fed Watch tool.
A lot of the sluggish momentum in equities is likely to do
with a bit of indecision about what's going to happen at the
Fed's September meeting, Daniela Hathorn, senior market analyst
at Capital.com, said.
U.S. consumer confidence numbers for August are due at 10
a.m. ET, but analysts say the next major catalyst will most
likely be the July Personal Consumption Expenditure data due on
Friday.
Meanwhile, UBS Global Wealth Management raised the odds of a
U.S. recession to 25% from 20%, citing revised estimates of job
growth and the recent July labor report that showed softness in
the factors determining workers' income.
Paramount Global ( PARAA ) slid 5.5% after media veteran
Edgar Bronfman Jr withdrew from the race for the company,
clearing the way for Skydance Media to take control of Shari
Redstone's media empire.
Chinese e-commerce giant JD.com's U.S.-listed shares
gained 3.6% after its board approved a new $5 billion share
repurchase program.
Hershey fell 1.9% after brokerage Citigroup
downgraded the chocolate maker's shares to "sell" from
"neutral".