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US STOCKS-Wall St set to slip as caution prevails before big corporate earnings
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US STOCKS-Wall St set to slip as caution prevails before big corporate earnings
Oct 21, 2024 6:41 AM

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

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

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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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114 S&P 500 companies to report results this week

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Futures down: Dow 0.15%, S&P 500 0.27%, Nasdaq 0.45%

(Updated at 8:25 a.m. ET/1225 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 21 (Reuters) -

Wall Street's main indexes were poised to dip on Monday

following the previous week's rally, ahead of major earnings

reports that could influence whether indexes retreat from record

highs or sustain the momentum.

Benchmark 10-year Treasury yields rose as high as 4.13%,

pressuring rate-sensitive growth stocks.

All the so-called Magnificent Seven group of stocks

slipped in premarket trading, led by a 1.1% fall in Tesla

, while Nvidia ( NVDA ) dropped 0.3% and Apple ( AAPL )

lost 0.4%.

Meanwhile, Boeing ( BA ) jumped 3% 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 66 points, or 0.15%, U.S.

S&P 500 E-minis were down 15.75 points, or 0.27% and

Nasdaq 100 E-minis were down 91.25 points, or 0.45%.

A broadly positive start to the quarterly earnings season,

upbeat economic data and continued optimism around Federal

Reserve rate cuts had propelled indexes higher over the past two

weeks.

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.

"What we're seeing today is a market that is basically

taking a bit of a breather and probably consolidating some of

those strong gains that we had last week," said Peter Cardillo,

chief market economist, Spartan Capital Securities.

"The market last week closed at record highs and despite

the run up in yields... remains resilient because of the fact

that the earnings are coming in better than expected."

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.

Among S&P 500 companies that reported as of Friday,

83.1% beat earnings estimates versus the 79.1% average of the

previous four quarters, according to data compiled by LSEG.

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.

In broader markets, trades expected to perform well if

Republican candidate Donald Trump wins in November were catching

bids, as polls showed the former U.S. president's chances

improving.

"As the election date approaches, even small changes in

tight polls could drive seemingly erratic swings in market

sentiment," Danske Bank analysts said.

Spirit Airlines ( SAVE ) skyrocketed 36% after the company

reached an agreement to extend a debt refinancing deadline by

two months.

Humana gained 4.6% after a report said Cigna ( CI )

had resumed merger talks with the health insurer.

Home sales, flash PMI and durable goods reports are on the

data docket this week, as is the Federal Reserve's Beige Book.

Fed officials Neel Kashkari, Jeffrey Schmid and Mary Daly

are scheduled to speak on the day.

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