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US STOCKS-Futures mixed ahead of week packed with earnings, economic data
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US STOCKS-Futures mixed ahead of week packed with earnings, economic data
Oct 15, 2024 10:00 PM

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

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

*

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.

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