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Boeing ( BA ) slips after job-cut plans, jet delivery delay
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B. Riley Financial ( RILY ) soars after company says will sell unit
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Futures: Dow down 0.17%, S&P 500 up 0.15%, Nasdaq up 0.25%
(Updated at 07:10 a.m. ET/1110 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 14 (Reuters) -
U.S. stock index futures were mixed on Monday as investors
geared up for a week packed with third-quarter earnings reports
and economic data that will likely test stretched stock market
valuations.
Dow E-minis were down 72 points, or 0.17%, S&P
500 E-minis were up 8.5 points, or 0.15%, and Nasdaq 100
E-minis were up 50.75 points, or 0.25%.
Major financial companies 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 would be "a very big focus" on AI investment and the
extent to which companies might delay capital expenditure, among
other metrics, due to uncertainty around the outcome of the
upcoming U.S. election, Ostwald said.
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 watch for crucial economic data this
week, notably September retail sales, which are due on Thursday,
for clues on the financial health of U.S. consumers.
Federal Reserve officials Christopher Waller and Neel
Kashkari are scheduled to speak through the day.
While traders have dialed back expectations for an outsized
50-basis-point rate cut at the Fed's November meeting after a
string of strong labor market data, bets on a 25-basis-point
reduction have stayed largely intact at 86.1%, according to the
CME Group's FedWatch tool.
Among single movers, planemaker Boeing ( BA ) slipped 2.1%
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 17.5%
after the company said it had agreed to sell its unit, Great
American Group, to asset management firm Oaktree Capital in a
$386-million deal.
U.S.-listed shares of Chinese firms such as Alibaba
and PDD Holdings ( PDD ) slipped more than 2% each as investors
were left guessing on the size of the overall fiscal stimulus
China announced on Saturday.
VF Corp ( VFC ) fell 3.1% after Wells Fargo ( WFC ) downgraded
the apparel retailer to "underweight" from "equal weight".
Cryptocurrency-linked stocks such as Coinbase
gained 3.9%, Riot Platforms ( RIOT ) added 3.5% and
MicroStrategy ( MSTR ) was up 4.7%, tracking gains in Bitcoin
.