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US STOCKS-Wall Street eyes muted open as investors weigh earnings; chips, oil stocks fall
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US STOCKS-Wall Street eyes muted open as investors weigh earnings; chips, oil stocks fall
Oct 15, 2024 8:22 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

UnitedHealth ( UNH ) falls after Q3 results

*

Johnson & Johnson ( JNJ ) down following results

*

Banks broadly gain after earnings

*

Boeing ( BA ) up after it lines up $35 bln in funds

*

Futures: Dow down 0.03%, S&P 500 up 0.02%, Nasdaq flat

(Updated at 8:30 a.m. ET/1230 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 15 (Reuters) -

Futures pointed to a subdued open for Wall Street's main

indexes on Tuesday, as investors took a breather after a rally

in the previous session and parsed a mixed set of quarterly

results from companies such as UnitedHealth ( UNH ) and Bank of America ( BAC ).

Losses in semiconductor companies and oil stocks also

weighed on sentiment, with AI-darling Nvidia ( NVDA ) down 0.7%

in premarket trading following a record high close on Monday,

after a report the U.S. is considering limiting exports of

advanced artificial intelligence chips from the company and

other U.S. peers to some countries.

Shares of Advanced Micro Devices ( AMD ) lost 1%.

Meanwhile, oil companies tumbled, with Exxon Mobil ( XOM )

and Occidental Petroleum ( OXY ) down 2.7% and 3%,

respectively, as crude prices dropped 4%.

Among a slew of earnings, health insurer UnitedHealth ( UNH )

dropped 3.7% after reporting a surge in medical costs in

the third quarter. Johnson & Johnson ( JNJ ) also reversed

course to fall 1%, despite lifting its annual profit and sales

forecast.

Dow E-minis were down 12 points, or 0.03%, U.S.

S&P 500 E-minis were up 1.25 points, or 0.02%, Nasdaq

100 E-minis were up 0.75 points, or flat.

"Nothing has really happened just yet to offer any good

guidance for investors," said Sam Stovall, chief investment

strategist at CFRA Research.

On a brighter note, financial shares gained ground after

several major banks reported results, adding to optimism around

the sector after a set of reports from institutions including

JPMorgan Chase ( JPM ) kicked off the third-quarter reporting

season on an upbeat note last week.

Bank of America ( BAC ) jumped 2% after beating

third-quarter

profit

estimates, Goldman Sachs ( GS ) was up 2.9% as its profit

rose on a continued boost from

investment banking, while Charles Schwab ( SCHW ) soared

9.4% after beating estimates.

"The financial sector (is) experiencing upward revisions

to third-quarter earnings estimates, but all that's happening is

that it's going from a low single digit gain to a mid-single

digit gain - certainly not knocking the ball out of the park,"

Stovall said.

A number of S&P 500 companies are scheduled to report

results throughout the week, which will help investors gauge the

health of the U.S. economy. Large companies will also need to

justify their expensive stock valuations, particularly in the

tech sector, where valuations have grown increasingly inflated

in the past year.

All three major indexes jumped on Monday, with the S&P

500 and Dow Jones notching record highs for the

second consecutive session.

The Dow closed above the 43,000-mark for the first time,

while the benchmark S&P 500 is nearing the psychologically

significant 6,000 level.

Boeing ( BA ) rose 1.1% after the planemaker filed to raise

up to $25 billion through a stock and debt offering and entered

into a $10 billion credit agreement amid a crippling strike and

upcoming debt maturities.

Traders are pricing in about an 88% chance the Fed will

cut rates by 25 basis points in November and a slight

probability it will leave rates unchanged, according to CME's

FedWatch.

Speeches from Federal Reserve officials Adriana Kugler, Mary

Daly and Raphael Bostic are also on deck, while economic data

including monthly retail sales figures are due on Thursday.

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