US Stock Futures Mixed

US stock futures were broadly mixed on Monday after the S&P 500 and Dow Jones Industrial Average hit record highs last week. Traders prepare for earnings from Tesla and Texas Instruments.

1. Futures Mixed

US stock futures hovered around the flatline as investors anticipated numerous corporate earnings reports this week. As of 03:26 ET (07:26 GMT), the Dow futures rose by 47 points (0.1%), S&P 500 futures were mostly unchanged, and Nasdaq 100 futures fell by 33 points (0.2%). The major US indices achieved a sixth consecutive weekly gain, with Dow and S&P 500 recording fresh closing highs.

Positive sentiment was fueled by Netflix’s better-than-expected subscriber growth and favorable outlook, alongside Apple reporting an increase in iPhone sales in China. Nvidia’s stock also saw an uptick after a price target upgrade by Bank of America. Solid company results and positive US economic data have driven recent gains, but concerns about high valuations and the upcoming US presidential election remain.

2. Major Earnings Ahead

As earnings season heats up, Tesla is set to report results after the market closes on Wednesday. Tesla's shares declined after revealing its robotaxi, which some investors found lacking in details. Year-to-date, Tesla shares are down about 11%, compared to a 22.5% gain for the S&P 500.

Texas Instruments and Lam Research will also announce their results after a volatile week for the semiconductor industry, which was affected by ASML's lower-than-expected sales projections but saw a recovery thanks to Taiwan Semiconductor Manufacturing Co.'s strong quarterly profit report.

3. Starboard Takes Stake in Kenvue

Reports indicate that activist investor Starboard Value acquired a stake in Kenvue, the consumer products company behind well-known brands like Band-Aid and Listerine. The exact stake size remains undisclosed. Kenvue, spun off from Johnson & Johnson, has a market capitalization of approximately $41.6 billion and has seen its shares drop 18% since its May 2023 listing. Starboard may aim to reevaluate Kenvue's marketing and pricing strategies, as per reports.

4. PBOC Slashes Lending Rates

The People's Bank of China decreased its benchmark loan prime rate by 25 basis points to rejuvenate the economy. The one-year LPR dropped to 3.10% from 3.35%, and the five-year LPR reduced to 3.60% from 3.85%. This follows previous signals indicating a rate cut, although investor confidence remains cautious regarding the clarity and execution of growth measures announced by Beijing.

5. Oil Steadies After Weekly Decline

Oil prices rose slightly on Monday after significant losses last week, with Brent up 0.6% to $73.50 per barrel and US crude (WTI) increasing 0.8% to $69.23 per barrel. Prices were pressured by concerns over global demand growth, especially from China, which reported sluggish economic growth in Q3. The Chinese central bank's rate cut provided some positive sentiment. Tensions in the Middle East, particularly Israel’s actions against Hamas and Hezbollah, continue to be significant factors affecting oil prices.