US stock futures pointed to a mixed open Thursday, with the Dow called higher but the Nasdaq set to lead the selling as semiconductor stocks came under pressure. Strong results from Taiwan Semiconductor and a $2.8 billion drug takeover framed a busy earnings session.
Futures pointed to a split open on Wall Street. The Dow Jones was called up 0.2%, the S&P 500 down 0.2% and the Nasdaq off 0.8% as chip stocks came under pressure. Technology stocks continued to yo-yo through a fresh batch of corporate earnings.
Chip earnings fail to lift futures
Weakness in Asian semiconductor names appeared to spill into US futures. Markets were unimpressed even as Taiwan Semiconductor beat expectations with a 77% jump in quarterly profit and gave upbeat guidance, citing demand for AI chips. TSMC shares fell about 5% in US premarket trading.
That followed a similar negative reaction to strong results from Dutch chip equipment maker ASML, highlighting investors' increasingly demanding expectations for AI-linked companies.
Inflation data steadies rate expectations
The three major US indexes all closed higher on Wednesday after softer-than-expected producer price inflation reinforced expectations that the Federal Reserve will leave interest rates unchanged later this month. The Dow rose 150 points, or 0.3%, to 53,141.48. The S&P climbed 0.4% to 7,614.75, and the Nasdaq Composite added 0.6% to close at 25,654.64.
Oil was little changed, with West Texas Intermediate trading just below $80 a barrel, despite further escalation in the Middle East.
Earnings and deals in focus
A swathe of life science updates filled the pre-open flow. UnitedHealth rose 6% in premarket trading after beating second-quarter earnings and raising its full-year guidance. Abbott Laboratories gained 3.3% on better-than-expected quarterly results.
The sharpest move came from AtaiBeckley, which surged almost 34% after agreeing to a $2.8 billion takeover by Eli Lilly, a deal whose milestone payments could lift the total to $3.8 billion. Investors now turn to Netflix, which reports after the closing bell.
Source: Proactive (via Yahoo Finance)
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