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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.