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Futures up: Dow 0.19%, S&P 500 0.29%, Nasdaq 0.4%
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WeightWatchers jumps on Amazon partnership
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Boeing ( BA ) rises after FAA approves 737 MAX production hike
(Updates with analyst comments, prices before the opening bell)
By Pranav Kashyap and Twesha Dikshit
Oct 20 (Reuters) - Wall Street was poised for a firm
start on Monday as investors prepared for a wave of earnings
from corporate majors and a long-awaited inflation report, which
could shake up markets later in the week.
Earnings season shifts into high gear this week, with Wall
Street heavyweights, including Tesla, Ford, GM
, Netflix ( NFLX ), Procter & Gamble ( PG ), Coca-Cola
, IBM ( IBM ) and Intel ( INTC ), set to report. Their
results will offer a fresh stress test for equities trading near
lofty valuations.
U.S. regional banks will also be in focus this week, with
upcoming earnings providing a pulse-check on the sector's
health. Markets are still reeling from last week's volatility,
triggered by renewed fears of systemic credit stress in the
banking sector. However, upbeat earnings from some regional
banks helped calm nerves.
S&P 500 companies are expected to post a 9.3% year-on-year
growth in third-quarter earnings, according to LSEG IBES data.
But with expectations running high, investors will look for
strong beats to justify the market's recent rally.
"Renewed credit concerns and concerns over trade policy are
indicative of just how vulnerable the market conditions are,"
said Jordan Rizzuto, chief investment officer at GammaRoad
Capital Partners.
U.S. President Donald Trump stoked uncertainty by suggesting
he might ease tariffs if Beijing resumes key agricultural
purchases such as soybeans. But he blamed the latest breakdown
in talks on China's tightening control over rare earth exports,
casting doubt on any near-term thaw.
Meanwhile, Trump vowed to keep "massive" duties on India
unless it halts Russian oil imports. He would also raise levies
on Colombia amid a feud over the country's role in the illicit
drug trade.
At 08:20 a.m., Dow E-minis were up 89 points, or
0.19%, S&P 500 E-minis were up 20 points, or 0.29%, and
Nasdaq 100 E-minis were up 97 points, or 0.4%.
DELAYED CPI
A U.S. government shutdown, which began on October 1, has
halted key economic data releases, leaving investors without
crucial indicators and navigating markets with limited
visibility. But attention now turns to Friday's consumer price
report - a pivotal inflation gauge that could set the tone ahead
of the Federal Reserve's policy meeting on October 28-29.
But the continued freeze on employment data amid the
shutdown means policymakers will enter the meeting without a
comprehensive view of the economy's health.
While September's core inflation is expected to hold steady
at 3.1%, markets are betting on a quarter-point rate cut this
month, with another reduction likely in December.
"The reports that come out, not just this one, but also in
the coming months, still will not answer how trade policy over
the longer term is going to influence inflationary pressures,"
Rizzuto said.
In premarket trading, Boeing ( BA ) shares rose 1.3% after
the planemaker won approval from the U.S. Federal Aviation
Administration to raise 737 MAX production to 42 planes per
month.
WeightWatchers climbed 7.8% after the company
partnered with Amazon for weight-loss drug delivery.