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At
5:26 a.m. ET, Dow e-minis were down 123 points, or 0.37%, S&P
500 e-minis were down 15.75 points, or 0.38%, and Nasdaq 100
e-minis were down 57.5 points, or 0.43%.
Chip gear maker Skyworks Solutions Inc's shares tumbled 9.8% in
premarket trading after projecting its current-quarter revenue
and earnings short of estimates.
Investors were hopeful of Skyworks' earnings following Apple
Inc's strong quarterly showing on Thursday, but global
smartphone sales have been suffering from weak demand.
Shares of other Apple suppliers including Qualcomm and Qorvo
fell 0.5% and 1.6%, respectively.
PayPal Holdings dropped 4.5% after a cut to its outlook for
annual adjusted operating margin overshadowed its profit
forecast raise.
Apart from earnings reports, attention will be on inflation data
on Wednesday, which is expected to show the Labor Department's
consumer price index (CPI) likely climbed 0.4% in April after
gaining 0.1% in March. Producer prices, weekly jobless claims
and consumer sentiment data are all lined up for the week.
Such data points will be scrutinized by investors to gauge
whether the Federal Reserve's aggressive tightening cycle -
including its most recent 25 basis point increase to interest
rates last week - is helping bring down inflation.
Markets also cautiously awaited an update on a debt ceiling
meeting as U.S. President Joe Biden meets Republican House
Speaker Kevin McCarthy and other congressional leaders at the
White House.
The meeting at 4 p.m. EDT (2000 GMT) is not expected to produce
a final agreement on raising the debt limit.
Regional bank stocks, which enjoyed a short-lived bounce before
ending the previous session lower, extended their falls to
another day. Shares of Pacwest Bancorp slid 11.7% and Western
Alliance dropped 5.2%.
A Fed survey showed credit conditions for U.S. business and
households continued tightening in the first months of the year,
but the results seemed to mark the accumulating impact of
monetary tightening rather than the cliff-like decline in credit
some feared after the March collapse of Silicon Valley Bank.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sonia
Cheema)
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