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Futures up: Dow 0.08%, S&P 500 0.15%, Nasdaq 0.07%
Sept 13 (Reuters) - U.S. stock index futures were flat
on Friday as caution prevailed about the size of the Federal
Reserve's interest rate cut that is expected next week, while
Boeing ( BA ) shares fell after the planemaker's factory workers went
on strike.
Traders' bets now indicate market pricing of a bumper rate
cut have shot up, with chances of a 50-basis point cut standing
at 41% compared with 14% seen on Thursday, according to CME's
FedWatch Tool.
Former New York Fed President Bill Dudley said there was a
strong case for a 50-bps interest rate cut.
"If pricing stays where it is currently, it would be the
first meeting in years where there's serious uncertainty about
the rates decision," Deutsche Bank analysts said.
"A couple of articles were published in the Wall Street
Journal and the Financial Times suggesting that a 50 bps move
was still in play, which has led markets to once again
re-evaluate their expectations."
The dollar came under pressure against major global peers,
while yields on U.S. government bonds eased across the curve.
Bets of the Fed sticking to a smaller 25-bps cut when it
meets on Sept. 17-18 had firmed on Thursday following a slightly
higher producer prices report, which came on the heels of the
August consumer prices data.
Meanwhile, Boeing ( BA ) fell 3.9% in premarket trading as
its U.S. West Coast factory workers walked off the job early on
Friday after overwhelmingly rejecting a contract deal.
Later in the day, the University of Michigan will issue its
consumer sentiment survey for September around 10 a.m. ET (1400
GMT).
Wall Street's main indexes had closed higher in the previous
session, boosted by rising megacap stocks, keeping all three
U.S. benchmarks on track for weekly gains.
At 05:06 a.m. ET, Dow E-minis were up 32 points, or
0.08%, S&P 500 E-minis were up 8.5 points, or 0.15%, and
Nasdaq 100 E-minis were up 14.5 points, or 0.07%.
Futures tracking the economically sensitive Russell 2000
small cap index were up 0.6%.
Among individual movers, Adobe slid 8.3% after the
Photoshop maker forecast fourth-quarter earnings below analysts'
estimates, signaling stiff competition and soft demand for its
AI-integrated editing tools.
Moderna ( MRNA ) eased 3.5% a day after its shares slid more
than 12% when the vaccine maker pushed back its break-even goal
by two years and predicted 2025 sales below its forecast for the
current year.
U.S. equities saw their biggest outflow since April in the
week till Wednesday, according to a report by Bank of America.