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Boeing ( BA ) gains after offering new wage deal
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Humana climbs after report Cigna ( CI ) resumes merger talks
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Futures down: Dow 0.22%, S&P 500 0.30%, Nasdaq 0.51%
(Updated at 06:46 a.m. ET/1046 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 21 (Reuters) -
Wall Street futures dipped on Monday as investors braced for
a busy week of major earnings reports that could either support
or disrupt the market's ongoing rally.
Boeing ( BA ) jumped 3.6% in premarket trading on news that
workers could vote on a new deal to end a costly five-week-long
strike. The planemaker is scheduled to report results later this
week.
Dow E-minis were down 94 points, or 0.22%, S&P
500 E-minis were down 17.5 points, or 0.30% and Nasdaq
100 E-minis were down 104 points, or 0.51%.
Benchmark 10-year Treasury yields rose to more than 4.12%,
pressuring growth stocks such as Apple ( AAPL ) and Microsoft ( MSFT )
, which edged lower 0.5% and 0.3%, respectively.
Among S&P 500 companies, 114 are expected to report
quarterly earnings this week, including International Business
Machines ( IBM ), Tesla and Coca-Cola. Results
from Texas Instruments ( TXN ) will turn the spotlight on the
chip sector.
As of last close, 83.1% of the S&P companies that have
reported so far have beaten earnings estimates versus the 79.1%
average of the previous four quarters, according to LSEG data.
A fairly solid start to this earnings season, upbeat
economic data and continued optimism around Federal Reserve rate
cuts have helped indexes rally higher, with the S&P 500 inching
closer to crossing the 6,000-mark milestone for the first time.
The Dow Jones Industrial Average and the benchmark
index notched up record closing highs on Friday. Both
indexes, along with the Nasdaq, logged a sixth consecutive week
of gains in their best winning streak so far this year.
However, risks such as rising geopolitical tensions in the
Middle East, gains in Treasury yields and some volatility ahead
of the upcoming U.S. presidential election are pressuring
equities.
"Stock markets continue to withstand geopolitical turmoil
and uncertainty about the US election... the election is getting
closer and the uncertainty will in all likelihood remain at
least until election night," analysts at SEB said in a note.
In broader markets, trades expected to perform well if
Republican candidate Donald Trump wins in November were catching
a bid, as polls showed the former U.S. president's chances
improving. The U.S. dollar, bitcoin and gold gained
ground.
In other stocks, Spirit Airlines ( SAVE ) skyrocketed 42%
after the company reached an agreement to extend a debt
refinancing deadline by two months.
Humana gained 4.4% after a report said Cigna ( CI )
had resumed merger talks with the health insurer.
UPS edged 1.8% lower after Barclays downgraded
the parcel service provider to "underweight" from "equal
weight".
In economic data, home sales, flash PMI and durable goods
readings are due this week, as is the Federal Reserve's Beige
Book.
A number of central bank speakers are due to speak on the
day, including Fed officials Lorie Logan, Neel Kashkari, Jeffrey
Schmid and Mary Daly.