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Futures: Dow down 0.08%, S&P 500 up 0.10%, Nasdaq up 0.15%
Oct 14 (Reuters) - U.S. stock index futures were mixed
on Monday as investors looked ahead to a week packed with
third-quarter earnings reports and crucial data, seeking
insights into the health of the world's largest economy.
At 5:28 a.m. ET, Dow E-minis were down 35 points,
or 0.08%, U.S. S&P 500 E-minis were up 5.75 points, or
0.10%, and Nasdaq 100 E-minis were up 30.5 points, or
0.15%.
Major financial companies had kicked off the third-quarter
corporate earnings season on a broadly positive note on Friday,
with JPMorgan Chase ( JPM ), Wells Fargo ( WFC ) and BlackRock ( BLK )
rallying after the results.
Their gains propelled the Dow Jones Industrial Average
and the benchmark S&P 500 to record closing highs
in the previous session.
Still, with stock valuations stretched - the S&P 500 is
trading at 21.7 times forward earnings, versus a long-term
average of 15.7 - companies will be forced to justify them and
satisfy investors.
"While the bar for earnings overall (is) beating estimates,
valuations remain lofty," said Marc Ostwald, chief economist &
global strategist at ADM Investor Services International.
"There will, among other things, be a very big focus on
profit margins, wage costs and on (artificial intelligence)
capital investment, and the extent to which companies may be
delaying CapEx due to uncertainty about the outcome of the
November (U.S.) elections."
Forty-one S&P 500 companies are expected to report results
this week, including Bank of America ( BAC ), Citigroup ( C/PN ),
Johnson & Johnson ( JNJ ) and Netflix ( NFLX ).
Year-over-year third-quarter earnings growth for the S&P 500
is estimated at 4.9%, according to LSEG data on Friday.
Investors will also eye key economic data this week, notably
September retail sales, which are due on Thursday, for clues on
the financial health of U.S consumers.
While traders have dialed back expectations for an outsized
50-basis-point rate cut from the Federal Reserve in November
after a string of strong labor market data, bets on a
25-basis-point cut have stayed largely intact.
Markets see about a 90% chance of a rate cut in November and
are expecting about two rate cuts in the remainder of the year,
according to LSEG data.
Among single movers, planemaker Boeing ( BA ) slipped 1.9%
in premarket trading after the company flagged a
larger-than-expected Q3 loss on Friday and said it would cut
17,000 jobs and delay first deliveries of its 777X jet by a
year.
Investment bank B. Riley Financial ( RILY ) leapt 19% after
a report the company that the will sell its unit Great American
Group to asset management firm Oaktree Capital for about $400
million.
Federal Reserve officials Christopher Waller and Neel
Kashkari are scheduled to speak on the day.