Investing.com — US stock futures were broadly mixed on Monday after the benchmark S&P 500 and 30-stock Dow Jones Industrial Average both logged record closing highs in the prior session. Traders are gearing up for a raft of corporate earnings this week, including numbers from electric carmaker Tesla and semiconductor group Texas Instruments (NASDAQ:TXN). Elsewhere, activist investor Starboard Value has taken a stake in Kenvue (NYSE:KVUE), the Johnson & Johnson (NYSE:JNJ) consumer products spin-off that went public last year, media reports say.
1. Futures mixed
US stock futures hovered around both sides of the flatline on Monday as investors looked ahead to a parade of corporate earnings reports this week.
By 03:26 ET (07:26 GMT), the Dow futures contract had edged up by 47 points or 0.1%, S&P 500 futures were mostly unchanged, and Nasdaq 100 futures had slipped by 33 points or 0.2%.
The main indices on Wall Street notched a sixth consecutive weekly gain last week, with the 30-stock Dow Jones Industrial Average and benchmark S&P 500 in particular logging fresh record closing highs on Friday.
Sentiment was bolstered by a surge in shares in streaming giant Netflix (NASDAQ:NFLX), which posted better-than-anticipated subscriber growth and an optimistic outlook for the rest of its fiscal year. Apple (NASDAQ:AAPL) also advanced on data showing an uptick in new sales of its flagship iPhone smartphone in key market China, while Nvidia (NASDAQ:NVDA) inched higher after analysts at Bank of America Global Research upgraded their price target of the artificial intelligence-darling’s stock.
A batch of broadly solid results from major companies has combined with positive US economic data to fuel a jump in stocks in recent days, although uncertainty still looms in the form of elevated stock valuations and the outcome of the all-important US presidential election in November.
2. Major earnings ahead
With earnings season kicking into high gear, Tesla (NASDAQ:TSLA) will be one of the first big US tech companies to report, with results due after the close of trade on Wednesday.
Tesla shares have taken a hit this month following the unveiling of its long-awaited robotaxi offering, which some investors viewed as lacking in concrete details. Year-to-date, Tesla shares have underperformed the S&P 500, losing around 11% compared to the broader index’s 22.5% gain.
Results are also due out from semiconductor firm Texas Instruments and wafer-fabrication equipment group Lam Research (NASDAQ:LRCX) following a volatile week for the chipmaking industry.
Shares in the sector slumped last Tuesday after ASML (AS:ASML), Europe’s biggest tech firm, projected lower-than-expected 2025 sales and bookings. But the segment rebounded on Thursday on a forecast-topping spike in quarterly profit from the world’s largest contract chipmaker and a major producer of advanced chips used in AI applications, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).
3. Starboard takes stake in Kenvue – reports
Activist investor Starboard Value has taken a stake in Kenvue, the consumer products firm behind brands like Band-Aid and Listerine which went public last year, according to various media reports.
The exact size of the stake has yet to be revealed, the reports said.
Kenvue, which was spun off from Johnson & Johnson, currently has a market capitalization of around $41.6 billion. Its shares have fallen by 18% since they were publicly listed in May 2023, and have lagged the wider S&P 500.
Citing a source familiar with the matter, Reuters reported that Starboard could be aiming to review how Kenvue markets and prices its brands. The hedge fund’s Chief Investment Officer Jeffrey Smith is due to present investment ideas at the 13D Monitor Active-Passive Investor Summit later this week.
The Wall Street Journal was the first to report on the story.
4. PBOC slashes lending rates
The People’s Bank of China cut its benchmark loan prime rate (LPR) by 25 basis points on Monday, in the latest move by Beijing to reinvigorate activity in the world’s second-largest economy.
The PBOC reduced its one-year LPR to 3.10% from 3.35%, while the five-year LPR — a key factor in determining mortgage rates — was lowered to 3.60% from 3.85%. The PBOC last cut rates in July.
Chinese authorities had largely telegraphed the decision, with PBOC Governor Pan Gongsheng previously predicting that the LPR rates would be cut by between 20 and 25 basis points.
The past month has seen Beijing unveil a raft measures aimed at reigniting growth, although a perceived lack of details on their implementation, timing and scale has inspired tepid investor confidence.
5. Oil steadies after weekly decline
Oil prices edged higher Monday, stabilizing after the previous week’s sharp losses on worries about global demand growth, particularly in top crude importer China.
By 03:27 ET, the Brent contract climbed 0.6% to $73.50 per barrel, while U.S. crude futures (WTI) traded 0.8% higher at $69.23 per barrel.
Brent had settled down more than 7% lower last week, while WTI lost around 8% after data showed that China’s economy grew at the slowest pace since early 2023 in the third quarter.
However, sentiment was somewhat lifted on Monday after the Chinese central bank cut benchmark lending rates.
Meanwhile, tensions in the Middle East remain in focus, as Israel continues its campaigns against both Hamas and Hezbollah, while also potentially preparing to retaliate against Iran for an early-October strike.
