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Boeing ( BA ) slips after US West Coast workers strike
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Adobe tumbles after forecasting Q4 earnings below
estimates
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Futures up: Dow 0.16%, S&P 500 0.22%, Nasdaq 0.09%
(Updated at 8:18 a.m. ET/1218 GMT)
By Shashwat Chauhan and Purvi Agarwal
Sept 13 (Reuters) - Wall Street was on track to open
slightly higher on Friday as investors reevaluated the
possibility of a bigger interest rate cut by the Federal Reserve
next week, while Boeing ( BA ) fell after the planemaker's factory
workers went on strike.
Traders' bets of a 50-basis point rate cut jumped overnight,
now standing at 43% compared with 14% on Thursday, CME's
FedWatch Tool showed.
Former New York Fed President Bill Dudley said there was a
strong case for a 50-bps interest rate cut. Separate media
reports calling the decision "a close call" also added to the
uncertainty.
"A couple of articles were published in the Wall Street
Journal and the Financial Times suggesting that a 50-bps move
was still in play, which has led markets to once again
reevaluate their expectations," Deutsche Bank analysts said.
The dollar came under pressure against major global peers,
while yields on U.S. government bonds eased across the curve.
Bets of the Fed sticking to a smaller 25-bps cut when it
meets on Sept. 17-18 had firmed on Thursday following a slightly
higher producer prices report, which came on the heels of the
August consumer prices data.
"Markets want the FOMC to ease fast and get on with the risk
of recession fighting. The meeting is a risky event and it will
remain so regardless of the 25 or 50 bps easing next week," said
Bob Savage, head of markets strategy and insights at BNY Mellon.
All major U.S. benchmarks had closed higher in the previous
session, boosted by rising megacap stocks, keeping them on track
for weekly gains.
Focus will be on the University of Michigan's consumer
sentiment survey for September, which is expected around 10 a.m.
ET (1400 GMT).
Dow E-minis were up 66 points, or 0.16%, S&P 500
E-minis were up 12.25 points, or 0.22%, and Nasdaq 100
E-minis were up 16.75 points, or 0.09%.
Futures tracking the economically sensitive Russell 2000
small cap index rose 1%.
Boeing ( BA ) fell 2.9% in premarket trading as its U.S.
West Coast factory workers walked off the job early on Friday
after overwhelmingly rejecting a contract deal.
Adobe slid 8.2% after the Photoshop maker forecast
fourth-quarter earnings below analysts' estimates, while Oracle
jumped 6.2% after the cloud computing company raised
its fiscal 2026 revenue outlook.
Moderna ( MRNA ) fell 3.4%. At least three brokerages
downgraded their rating on the vaccine maker's shares a day
after it pushed back its break-even goal by two years and
predicted 2025 sales below its forecast for the current year.
Chinese e-commerce firm PDD Holdings ( PDD ) dropped 5.7%
after the Biden administration said it was moving to curb
low-value shipments entering the U.S. duty-free under the $800
"de minimis" threshold.