(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
*
Futures up: Dow 0.1%, S&P 500 0.2%, Nasdaq 0.3%
*
WeightWatchers jumps on Amazon partnership
*
Boeing ( BA ) rises after FAA approves 737 MAX production hike
(Updates shares)
By Pranav Kashyap and Twesha Dikshit
Oct 20 (Reuters) - Wall Street futures edged higher on
Monday, as investors awaited earnings from corporate
heavyweights and a delayed inflation report that could trigger
fresh market moves later this week.
Markets were nursing bruises from last week's turbulence, as
fears of systemic credit stress in the banking sector unnerved
traders globally. However, upbeat earnings from some regional
U.S. banks allayed concerns, offering a brief reprieve from the
volatility.
Earnings from Wall Street majors, including Tesla,
Ford, GM, Netflix ( NFLX ), Procter & Gamble ( PG )
, Coca-Cola, IBM ( IBM ) and Intel ( INTC ), are
also set to roll in this week, presenting a fresh stress test
for the stock market.
Third-quarter earnings for S&P 500 companies were estimated
to grow 9.3% over the year earlier, according to LSEG IBES data.
At 06:52 a.m., Dow E-minis were up 48 points, or
0.1%, S&P 500 E-minis were up 11.5 points, or 0.17%, and
Nasdaq 100 E-minis were up 63 points, or 0.25%.
All three indexes closed higher on Friday and logged weekly
gains.
The CBOE Volatility Index, Wall Street's fear gauge,
also rose to its highest level in nearly six months on Friday,
after renewed U.S.-China trade tensions fueled a flight to
safety.
U.S. President Donald Trump has floated the idea of lowering
tariffs, if Beijing resumes key purchases such as soybeans.
While Trump acknowledged that a proposed 100% tariff on Chinese
goods would not be sustainable, he pinned the latest breakdown
in talks on China's tightening grip over rare earth exports.
Deutsche Bank analysts said Trump's dialed down rhetoric
"added to investor expectations that those 100% tariffs won't
come into force".
Trump, however, vowed to keep "massive" tariffs on India if
New Delhi did not cease purchasing Russian oil. The U.S.
president also said he would raise tariffs on Colombia amid a
feud where he has accused Bogota of complacency in the illicit
drug trade.
DELAYED CPI
The U.S. government shutdown has stalled key economic data
releases since October 1, but attention now turns to the
consumer price report, a closely watched inflation gauge that is
due on Friday, just ahead of the Federal Reserve's policy
meeting on October 28-29.
September's core inflation is expected to hold steady at
3.1%.
"There's still no sign of a compromise between Republicans
and Democrats that would see the government re-open. In terms of
the market implications, this is still affecting the flow of
economic data, so we're not getting regular releases," Henry
Allen, macro strategist at Deutsche Bank, said.
Meanwhile, the Fed has not pushed back against rate-cut
expectations, and markets are pricing in a quarter-point easing
this month, with another reduction likely in December.
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 14% after the company
partnered with Amazon for weight-loss drug delivery.