US STOCKS-Futures subdued after previous session's jump; data, earnings on tap

Reuters01-23 18:53
US STOCKS-Futures subdued after previous session's jump; data, earnings on tap

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Futures: Dow up 0.03%, S&P 500 dips 0.17%, Nasdaq off 0.47%

Jan 23 (Reuters) - U.S. stock index futures were subdued on Thursday, as investors paused after Wall Street's strong performance in the previous session and awaited economic data, more corporate earnings and remarks from President Donald Trump later in the day.

At 5:20 a.m. ET, Dow E-minis 1YMcv1 were up 12 points, or 0.03%, S&P 500 E-minis EScv1 were down 10.25 points, or 0.17% and Nasdaq 100 E-minis NQcv1 were down 103.5 points, or 0.47%.

The S&P 500 .SPX and the blue-chip Dow .DJI logged their sixth session of advances out of seven on Wednesday, with the benchmark index notching an intraday record high for the first time in over a month.

Trump's multi-billion show of support for artificial intelligence infrastructure, along with Netflix's NFLX.O strong results, provided the latest tailwind for markets, which had been recovering since last week after data showed underlying inflation was cooling despite robust economic activity.

In premarket trading, AI darlings Nvidia NVDA.O dropped 1.8% and Microsoft MSFT.O dipped 0.7%, while chip stocks such as Advanced Micro Devices AMD.O and Broadcom AVGO.O slipped 0.8% each.

Uncertainty about Trump's trade plans prevailed as he said tariffs on imports from Canada, Mexico, China and the European Union could be announced on Feb. 1, although analysts expect April 1 to be the date when major tariff plans will be unveiled.

All eyes will be on Trump's appearance at the World Economic Forum in Davos at 11:00 a.m. ET.

"One new area of interest may be the international tax code, where he could potentially tariff (countries) trying to enact the (Organization for Economic Cooperation and Development's) Global Minimum Tax – clearly something on the mind of his tech industry sponsors," said analysts at ING Bank.

Trump pulled the U.S. out of the OECD tax deal on Monday. Tariff imposition could threaten a global trade war, upside price pressures and slow down the Federal Reserve's pace of monetary policy easing.

Traders expect the central bank to leave interest rates unchanged for the first half of 2025, according to data compiled by LSEG.. A moderate rise in longer-dated Treasury yields US10YT=RR, US30YT=RR also limited gains among stocks.

On the economic data front, economists expect a Labor Department report, due at 8:30 a.m. ET, to show jobless claims stood at 220,000 in the previous week, which could also reflect some impact from wildfires in California.

Among top movers, Electronic Arts EA.O was down 13.7% after the videogame publisher cut its forecast for annual bookings, citing weakness in its established soccer franchise.

Alaska Air ALK.N rose 3.8% after topping Street estimates for fourth-quarter profit and forecast a smaller-than-expected loss for the current quarter.

Quarterly reports from GE Aerospace GE.N, American Airlines AAL.O and Union Pacific UNP.N among others are due before markets open.

Micron MU.O dropped 3.5% after South Korean rival SK Hynix 000660.KS warned of steeper demand declines in its commodity memory chips used in smartphones and computers.

(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)

((johann.mcherian@thomsonreuters.com;))

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