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TSMC rises, lifts chips stocks after upbeat results

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Domino's Pizza slumps after Q2 same-store sales miss

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D.R. Horton ( DHI ) falls after tightening home sales forecast

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Warner Bros Discovery ( WBD ) jumps on report of mulling break-up

plan

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Jobless claims higher than expected

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Futures: Dow down 0.19%, S&P 500 up 0.25%, Nasdaq up 0.67%

(Updated at 8:45 a.m. ET/1245 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

July 18 (Reuters) -

Nasdaq and S&P 500 futures were on track to open higher on

Thursday, as megacaps rebounded and an upbeat forecast from

Taiwan Semiconductor Manufacturing lifted chip stocks following

a sharp sell-off in the previous session.

U.S.-listed shares of TSMC jumped 2.4% in premarket

trading after the world's largest contract chipmaker raised its

full-year revenue forecast on surging demand for AI chips. The

stock had tumbled in the previous session after comments about

Taiwan from Republican presidential candidate Donald Trump.

TSMC's results brought some cheer back to chip and

megacap tech stocks, with Apple ( AAPL ) and Nvidia ( NVDA ),

both TSMC customers, up 0.8% and 3%, respectively.

Other chipmakers such as Advanced Micro Devices ( AMD ),

Intel ( INTC ), Marvell Technology and Arm Holdings

rose between 0.9% and 2.1%.

The sector was set to rebound after a drastic sell-off

in Wednesday's session, which saw

chip stocks lose over $500 billion in market value following

a report that the U.S. was considering tighter curbs on exports

of advanced semiconductor technology to China, as well as

Trump's Taiwan comments.

The Philadelphia SE Semiconductor index logged its

worst day in four years on Wednesday, pressuring megacap shares.

The group of so-called "Magnificent 7" stocks rose, with

Microsoft, Tesla and Meta Platforms

gaining between 0.5% and 1.5%.

The quarterly earnings season that is underway will be a

significant test for whether expensively valued megacaps can

keep investors satisfied with strong results.

"Risks in the technology sector got pointed out

yesterday, with continuing trade issues between the U.S. and

China," said Paul Nolte, senior wealth adviser and market

strategist for Murphy & Sylvest.

On the earnings front, Domino's Pizza slumped

12.1% after falling short of estimates for quarterly same-store

sales, while homebuilder D.R. Horton ( DHI ) dropped 2.2% after

the homebuilder tightened its annual forecast for home sales.

The small-cap Russell 2000 index was set to open lower for a

second day, with futures down 0.4%. The index fell 1%

in the previous session, snapping a five-day winning streak.

Despite the pullback, Nolte said he expects the rotation

from large tech stocks to small-cap and value companies to

continue, although "not in a straight line".

Dow futures also slipped after the index notched its third

consecutive closing high on Wednesday.

Elsewhere, the Labor Department reported jobless claims rose

to 243,000 for the week ended July 13 - higher than previously

forecast - another signal that the jobs market was cooling.

Traders are pricing in a 93.5% chance of a

25-basis-point rate cut from the Federal Reserve by September,

according to CME's FedWatch.

Comments from Fed officials Lorie Logan, Mary Daly and

Michelle Bowman are also expected later in the day.

At 8:45 a.m. ET, Dow e-minis were down 77 points,

or 0.19%, S&P 500 e-minis were up 14.25 points, or

0.25%, and Nasdaq 100 e-minis were up 133 points, or

0.67%.

Warner Bros Discovery ( WBD ) jumped 7.0% after a report

that the CNN and HBO owner had discussed a plan to split its

digital streaming and studio businesses from its legacy TV

networks.

Shares of Netflix ( NFLX ) rose 0.4%, ahead of results

expected after the closing bell.