(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
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Aug JOLTS report, Sept. ISM survey due at 10 a.m. ET
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Boeing ( BA ) slips after report of weighing capital raise
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Futures: Dow off 0.17%, S&P 500 up 0.07%, Nasdaq up 0.28%
(Updated at 07:07 a.m. ET/ 1107 GMT)
By Johann M Cherian and Purvi Agarwal
Oct 1 (Reuters) - U.S. stock index futures were mixed on
Tuesday ahead of the first of multiple labor market reports this
week, a day after Federal Reserve Chair Jerome Powell pushed
back against market expectations for outsized interest rate
cuts.
At an economics conference on Monday Powell reiterated that
the central bank is likely to reduce borrowing costs by an
additional 50 basis points by year-end, based on data that
pointed to robust consumer spending and gross domestic income.
Traders, who were divided over the size of the Fed's
upcoming interest rate cuts, are now pricing in a 25 bps
reduction at the November meeting with a 60.2% probability,
compared with 41.8% a week ago, as per the CME Group's FedWatch
Tool.
With inflation nearing the central bank's 2% target, focus
is squarely on the labor market, the mandate the Fed is focused
on after kicking off its monetary policy easing cycle in
September.
All eyes are on August's job openings and labor turnover
survey (JOLTS) due at 10 a.m. ET, along with the Institute for
Supply Management's estimate for manufacturing activity in
September.
"Given that Powell thinks inflation has been conquered, a
surprise in the employment reports could still alter the Fed's
course," analysts at Rabobank said in a note.
"After all, it's not preset. For example, very poor
employment growth or a jump in the unemployment rate could still
push the FOMC (Federal Open Market Committee) to make a 50 bps
cut."
At 7:07 a.m., Dow E-minis were down 72 points, or
0.17%, S&P 500 E-minis were up 4 points, or 0.07%, and
Nasdaq 100 E-minis were up 56.5 points, or 0.28%.
Comments from Fed Presidents Raphael Bostic, Thomas Barkin,
and Susan Collins, alongside Governor Lisa Cook, will be parsed
for their insights on the economy and the monetary policy
outlook.
Wall Street's three main indexes closed September higher,
bucking a historical trend where equities' performance have been
weak on average during the month. The benchmark S&P 500
and blue-chip Dow notched their fifth straight month in
gains and closed near record highs in the previous session.
Markets also monitored a port strike on the East Coast and
the Gulf Coast halting the flow of about half the nation's ocean
shipping.
Retailers account for half of all container shipping volumes
and shares of Designer Brands ( DBI ), Costco, Walmart ( WMT )
were little changed in premarket trading.
Boeing ( BA ) dipped marginally after a report said the
planemaker is considering
raising at least $10 billion
by selling new stock.
CVS Health ( CVS ) added 2% after a report showed the
healthcare firm is exploring options that could include a
break-up of the company to separate its retail and insurance
units.
McCormick ( MKC ) was up 2.5% after the hot sauce maker
raised annual forecasts and beat third-quarter estimates.
Tesla was flat ahead of reporting third-quarter
deliveries on Wednesday, with analysts expecting an 8% jump from
a year ago.