Futures subdued after tech selloff; bank earnings in focus

Reuters

Futures subdued after tech selloff; bank earnings in focus

2024 10월 16 일, 오전 11:27 GMT

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Futures: Dow down 0.01%, S&P 500 up 0.04%, Nasdaq up 0.10%

Updated at 07:04 a.m. ET/1104 GMT

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 16 (Reuters) - U.S. stock index futures were largely subduedon Wednesday, following a selloff in tech and oil stocksin the previous session, as investors awaited quarterly results from Morgan Stanley and other banks.

Chip heavyweight Nvidia NVDA.O rose 0.6% in premarket trading, after slumping nearly 5% in the previous session, following a report the Biden administration is considering capping AI chip exports by U.S. companies.

Semiconductor stocks were broadly mixed, with the U.S.-listing of chip equipment-maker ASML Holding ASML.O ASML.AS losing 3.9% after the company cut its annual sales forecast on Tuesday.

Intel INTC.O dipped 2% after the Cybersecurity Association of China recommendedinitiating a review of the chipmaker's products sold in the country.

Dow E-minis 1YMcv1 were down 4 points, or 0.01%, S&P 500 E-minis EScv1 were up 2.25 points, or 0.04% and Nasdaq 100 E-minis NQcv1 were up 20.25 points, or 0.1%.

Steep declines in semiconductor and oil stocks dragged on Wall Street on Tuesday, while investors assessed a mixed bag of earnings. Shares of health insurer UnitedHealth UNH.N slumped, offsetting the gains from major banks' upbeat results.

Corporate results are due through the week, along with key economic data including the retail sales and industrial production figures on Thursday, all of which are expected to shed light on consumer health and the growth outlook for the world's largest economy.

The S&P 500 and Dow were trading around record high levels despite Tuesday's fall, with continued optimism about future rate cuts from the Federal Reserve as well as economic growth buoying sentiment.

"I continue to view dips as buying opportunities, with said downside likely to prove shallow and short-lived in nature," said Michael Brown, senior research strategist at Pepperstone.

Banks will be in focus on the day, with most big names reporting broadly upbeat results so far. Earnings from lendersincluding Morgan Stanley MS.N due before the bell.

"Providing that banks prove a reliable barometer for earnings season more broadly, solid earnings growth, coupled with resilient economic growth, should continue to power the market higher," Brown said.

Citizens Financial Group CFG.N lost 1.2%, while U.S. Bancorp USB.N gained 2% after the banks reported their third-quarter results.

Bets on a 25-basis-point rate cut at the Federal Reserve's November meeting have risen above 90%, according to CME's FedWatch.

September import and export prices data is also due later in the day.

Shares of most rate-sensitive megacap tech stocks edged higher in premarket trading, helped by easing U.S. Treasury yields. Alphabet GOOGL.O and Amazon.com AMZN.O both rose 0.2%, whileApple AAPL.O was flatafter touching a record high on Tuesday.

Shares of Interactive Brokers Group IBKR.O fell 4.5% after missing estimates for adjusted third-quarter earnings.

J.B. Hunt JBHT.O climbed 6.8% after beating third-quarter profit estimates on Tuesday after the bell.

Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai

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