S&P 500 futures muted as investors await big bank earnings; chip weakness weighs
SPY•S&P 500 futures were nearly flat Tuesday as investors awaited third-quarter results from major banks, while chip stocks weighed on Nasdaq futures. Dow futures rose 0.61%, S&P futures gained 0.03% and Nasdaq 100 futures fell 0.51%.
1. Futures diverge
At 5:50 a.m. ET, Dow E-minis rose 319 points, or 0.61%, S&P 500 E-minis gained 2 points, or 0.03%, and Nasdaq 100 E-minis fell 157.25 points, or 0.51%. JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup were scheduled to report third-quarter results before the bell; their shares rose 0.4% to 1.4% in premarket trading.
2. Chip stocks decline
US chipmakers remained under pressure after Monday's selloff. Nvidia fell 0.5%, AMD eased 1.2%, Marvell Technology slipped 2.4% and Micron Technology dipped 2.8%. Western Digital, Seagate and Sandisk dropped between 3.5% and 4.5%. Nic Puckrin, a cross-asset analyst and Coin Bureau founder, cited potential competition from China's CXMT as a concern.
3. Earnings and economic data
S&P 500 earnings for July-September are expected to grow 30.6%, with technology and energy companies expected to gain the most, data compiled by LSEG showed. US consumer and producer prices and retail sales figures due later in the week could inform expectations for monetary policy. Traders widely expect the Federal Reserve to hold rates steady this month, while a December hike remains possible.
