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Tesla Inc rose 2.6% in premarket trading after the electric-car
maker raised prices of its Model X, Model S variants by $5,000,
while Morgan Stanley boosted its price target on the stock to
$1,200 from $900.
Facebook Inc will kick off quarterly results for mega-cap growth
names after markets close on Monday, with investors fearing the
social media giant's ad revenue could face the brunt of Apple's
iPhone privacy changes, that hit Snap Inc's third-quarter
revenue.
Microsoft, Apple, Alphabet and Amazon.com Inc are all set to
report their results later this week.
The companies shares, which collectively account for over 22% of
the weighting in the S&P 500, were mixed in trading before the
bell.
"After Snap got an Apple caught in its throat, markets will have
an itchy trigger finger over the sell button if the social
network says the same," said Jeffrey Halley, senior market
analyst, Asia Pacific at OANDA.
"Additionally, this week, it is a FAANG-sters paradise ... that
decides whether the U.S. earnings season party continues, before
the FOMC (Federal Open Market Committee) reasserts its dominance
next week."
Some strong earnings reports helped lift the S&P 500 and the Dow
to record highs last week, with the benchmark index rising 5.5%
so far in October to recoup all of the losses suffered last
month.
However, market participants are looking beyond the impressive
earnings numbers with a focus on how companies mitigate supply
chain bottlenecks, labor shortages and inflationary pressures to
sustain growth.
Analysts expect S&P 500 earnings to grow 34.8% year-on-year for
the third quarter, according to data from Refinitiv.
On the economic data front, readings on U.S. third-quarter GDP -
the Federal Reserve's favored inflation gauge, the core PCE
price index and consumer confidence data will be released later
this week.
At 6:50 a.m. ET, Dow e-minis were up 16 points, or 0.04%, S&P
500 e-minis were up 6.25 points, or 0.14%, and Nasdaq 100
e-minis were up 41.25 points, or 0.27%.
PayPal Inc jumped 7.1% after the payments company said it is not
buying the digital pinboard site Pinterest Inc for as much as
$45 billion at this time.
Shares of Pinterest plunged 12.5%.
Oil firms including Chevron Corp and Exxon Mobil rose about 0.5%
each, tracking Brent crude prices to three-year high. [O/R]
Shares of major Wall Street lenders also edged higher.
Carnival Corp slipped 1.2% after Citigroup downgraded the cruise
operator's stock to "neutral" from "buy".
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
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