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US STOCKS-Wall St eyes lower open as bond yields rise; Starbucks, Coca-Cola dip
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US STOCKS-Wall St eyes lower open as bond yields rise; Starbucks, Coca-Cola dip
Oct 23, 2024 6:35 AM

(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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Starbucks ( SBUX ) down after suspending annual forecast

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Coca-Cola sees revenue boost from rising soda demand

*

Boeing ( BA ) slips after results, contract vote awaited

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Texas Instruments ( TXN ) gains after Q3 profit beat

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Futures down: Dow 0.51%, S&P 500 0.24%, Nasdaq 0.29%

(Updated at 8:25 a.m. ET/1225 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 23 (Reuters) -

U.S. stock index futures signaled another lower open on

Wednesday as Treasury yields ticked up, fueled by concerns of a

potentially less dovish central bank, while investors focused on

earnings from companies including Coca-Cola and Starbucks ( SBUX ).

Dow E-minis were down 222 points, or 0.51%,

U.S. S&P 500 E-minis were down 14.25 points, or 0.24%,

and Nasdaq 100 E-minis were down 60 points, or 0.29%.

U.S. Treasury yields were trading at three-month highs,

pressuring stocks as markets reassess the size of interest-rate

cuts over the next several months against the backdrop of strong

economic data.

"When you get a 10-year Treasury at a four and a quarter, it

pushes back on the rally in the stock market. Things start to

slow down... and people get a little bit nervous," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

"The market has done extremely well in a really short

period of time... off the recent lows. That has something to do

with it (the declines) as well."

Investors are pricing in about two rate cuts by the end of

2024, according to data compiled by LSEG.

Earnings were in focus, with Starbucks ( SBUX ) down 3.6% in

premarket trading after the company suspended its annual

forecast on Tuesday and reported revenue and profit declines in

preliminary fourth-quarter results.

Coca-Cola dipped 2.2% after the company reiterated

its annual profit growth forecast despite expecting higher

revenue, as demand for its sodas and juices increased in the

U.S.

Meanwhile, shares of troubled planemaker Boeing ( BA )

were last down 1% in choppy trading after the company reported a

quarterly

loss

of $6 billion, due to a crippling strike. Factory workers

will vote later in the day on a new

contract proposal

that could end the more than five-week-long standoff.

Tesla will be the first of the so-called

Magnificent Seven companies to report results after market

close. Its shares slipped 0.4%.

Shares of McDonald's slumped 6.9% after an E. coli

infection linked to the company's Quarter Pounder hamburgers

killed one and sickened many.

U.S. markets are near record high levels, but a combination

of earnings, a changing monetary policy outlook and the upcoming

presidential election will test the sustainability of the recent

rally and could lead to some market volatility.

Investors are also focused on the rising chances of a second

Donald Trump administration. If he wins, Trump's policies for

spending and tariff implementation are expected to lift the U.S.

fiscal deficit and inflation.

Of around 21% of S&P 500 companies that have reported so

far, 82% exceeded earnings estimates, according to LSEG data.

September home sales data and the Fed's Beige Book are

scheduled for release, while Fed officials Michelle Bowman and

Thomas Barkin are set to speak later in the day.

Semiconductor company Texas Instruments ( TXN ) gained

2.9% after its third-quarter profit beat forecasts, while

telecom firm AT&T ( T ) rose 2.8% after gaining more wireless

subscribers than expected in the third quarter.

Qualcomm ( QCOM ) was down 3% after a report said Arm

Holdings is cancelling an architectural license

agreement that allows the chipmaker to use intellectual property

to design chips.

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