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Starbucks ( SBUX ) down after suspending annual forecast
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Coca-Cola sees revenue boost from rising soda demand
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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.