(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
*
Futures: Dow down 0.19%, S&P 500 up 0.07%, Nasdaq up 0.41%
Nov 18 (Reuters) - U.S. stock futures were mixed on
Monday, as investors awaited key corporate results, particularly
from Nvidia ( NVDA ), following significant declines on Wall Street the
previous week.
Rising expectations the Federal Reserve will slow its pace
of rate cuts and uncertainty over the impact of U.S.
President-elect Donald Trump's cabinet appointments saw indexes
slump on Friday.
The S&P 500 and the Nasdaq pulled back from
record highs, seeing their worst weekly losses in more than two
months.
Results from AI-chip heavyweight Nvidia ( NVDA ), which
reports third-quarter earnings on Wednesday, will be crucial, as
investors assess whether the AI-optimism responsible for much of
markets' tech-driven rally can continue.
Nvidia ( NVDA ) fell 2.7% in premarket trading. Its revenue is
forecast to jump more than 80% to $33 billion, according to LSEG
data, and the company is expected to post a net income of $18.4
billion.
"Given that its (Nvidia's ( NVDA )) more recent earnings 'beats' have
been dwindling in size, this report will have to beat estimates
more than comfortably, especially with broader valuations
looking rather lofty and bond yields turning back higher after a
brief respite," said Marc Ostwald, chief economist and global
strategist at ADM Investor Services International.
Other megacaps edged higher, with Nasdaq 100 futures gaining
ground after the index fell for five consecutive
sessions. Alphabet rose 0.3%, Amazon.com ( AMZN ) was
up 0.8% while Tesla soared 8.1%.
Earnings from major retailers including Walmart ( WMT ),
Lowe's Companies and Target ( TGT ) this week will also
be scrutinized to gauge the strength of the U.S. consumer as the
key holiday shopping season is set to begin.
At 5:35 a.m. ET, Dow E-minis were down 82 points,
or 0.19%, S&P 500 E-minis were up 4.25 points, or 0.07%,
and Nasdaq 100 E-minis were up 84 points, or 0.41%.
Stock indexes have lost some of the sharp gains made in the
wake of Trump's decisive presidential election win, as optimism
over the Republican's potentially pro-business stance has given
way to focus on the inflationary impact of his policies and the
outlook for the U.S. Federal Reserve's interest-rate path.
Chicago Fed President Austan Goolsbee is expected to speak
on the day, the first of several central bank officials slated
this week. Their comments will be followed closely after Chair
Jerome Powell said the Fed was in no hurry to cut rates.
Traders are pricing in a 38% chance the Fed will keep rates
on hold in December, according to the CME FedWatch.
Still, Wall Street remains fairly well placed heading into
the year-end. The benchmark index has gained nearly 3% in
November and 23% year-to-date as solid economic data, the
presidential election and broadly upbeat earnings have propelled
equities to record highs.