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US STOCKS-Futures rise with inflation data, earnings in view
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US STOCKS-Futures rise with inflation data, earnings in view
Oct 10, 2024 11:55 PM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Pepsico ( PEP ) down after annual sales growth forecast cut

*

U.S.-listed shares of Chinese cos fall

*

Futures up: Dow 0.14%, S&P 500 0.4%, Nasdaq 0.44%

(Updated at 6:55 a.m. ET)

By Lisa Pauline Mattackal and Pranav Kashyap

Oct 8 (Reuters) - U.S. stock index futures bounced back

on Tuesday from a selloff in the previous session, as investors

turned their focus on key inflation data and third-quarter

earnings later this week for fresh insights into the Federal

Reserve's interest rate path.

All three major indexes closed down around 1% on Monday, as

a jump in Treasury yields, concerns about the impact of rising

conflict in the Middle East and a repricing of U.S. rate

expectation pressured equities.

U.S. S&P 500 E-minis were up 22.75 points, or 0.4%,

Nasdaq 100 E-minis were up 88 points, or 0.44%, Dow

E-minis were up 61 points, or 0.14%.

U.S. Treasury yields retreated slightly from Monday's highs,

though the yield on the benchmark 10-year note

remained above 4% as strong economic data last week prompted

investors to trim bets on the scope of the Federal Reserve

interest rate cuts over the rest of this year.

Traders have priced in a nearly 89% chance of a 25 basis

point interest rate cut from the Fed at its November meeting.

Bets on no rate change at the meeting also crept up slightly,

according to CME FedWatch.

"We did see strong sell off yesterday so it's not unnatural

to see a slight bounce, particularly as there's a vacuum of

fresh data today," Fiona Cincotta, senior market analyst at City

Index said.

"We're in a lull ahead of the busy end of the week. If we do

get a hotter-than-expected inflation read, that might unnerve

the markets quite quickly".

The CBOE Volatility index, Wall Street's "fear

gauge," retreated from Monday's highs but was still trading

around one-month high at 22.04

Meanwhile, PepsiCo ( PEP ) lost about 1% after the packaged

food giant posted a surprise drop in third-quarter revenue and

cut its forecast for annual sales growth.

The S&P 500 is expected to report a 3.2% year-over-year

earnings per share (EPS) rise in the third quarter, "with gains

for six of its 11 sectors," said Sam Stovall, chief investment

strategist at CFRA Research.

Fed Governor Adriana Kugler said earlier on Tuesday she

supported further interest rate cuts if inflation continues to

ease, as she expects.

Some Fed officials, including John Williams and Alberto

Musalem, had said on Monday that it would be appropriate to

reduce rates over time.

A number of other Fed officials are expected to speak later

in the day, including Raphael Bostic, Susan Collins and Philip

Jefferson.

International trade balance data for August is also due

later on Tuesday.

Investors were also watching out for the impacts of category

4 Hurricane Milton on the markets.

Among single stocks, shares of Honeywell International ( HON )

rose 2.3% after a report that the company is planning to

spin off its advanced materials business.

U.S.-listed shares of Chinese companies slid, tracking

losses in domestic stocks, as optimism over China's stimulus

measures waned due to the absence of more specific details.

Shares of Alibaba Group, JD.com and PDD

Holdings ( PDD ) slumped between 7.4% and 10.2%.

(Reporting by Lisa Mattackal in Bengaluru; Editing by Shinjini

Ganguli)

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