US STOCKS-Wall St set for lower open as oil prices jump, earnings in focus

Halliburton

Tue 14:08

Futures down: Dow 0.1%, S&P 0.37%, Nasdaq 0.8%
3M expands Amazon data center partnership, lifts annual profit forecast
GM shares fall as full-year profit forecast comes below analysts' estimate
Halliburton gains on Q3 profit beat
Brent hits five-month high as attacks on ships, Saudi sites fuel supply worries
Updates before market open
By Tharuniyaa Lakshmi and Ragini Mathur
Oct 20 (Reuters) - Wall Street was on track to open lower on Tuesday, pressured by renewed weakness in AI-linked stocks and a rebound in oil prices, while investors braced for major corporate earnings reports this week.
CoreWeave CRWV.O and Nebius Group NBIS.O were down 4.9% each in premarket trading, while Apple AAPL.O fell 1.5% and Nvidia NVDA.O slipped about 1%.
The pullback followed a brief rebound on Monday, when the S&P 500 .SPX and Nasdaq .IXIC advanced as investors bought the dip in technology stocks after last week's sharp selloff, fueled in part by concerns over CoreWeave's debt load and the cost of financing the AI buildout.
"Investors should focus on businesses translating AI investment into sustainable earnings and free cash flow, as well as those controlling critical infrastructure," said Alex Cargal, vice president at Bel Air Investment Advisors. 
"A diversified, appropriately sized approach can provide exposure to the long-term opportunity while helping manage the risks associated with elevated expectations and market concentration."
Elsewhere, shares of South Korean AI infrastructure company Elice Group 0158S0.KQ tumbled nearly 30% in their market debut, slipping below their IPO price after the company raised 201.1 billion won ($151.12 million) in its offering.
At 08:31 a.m. ET, Dow E-minis YMcv1 were down 54 points, or 0.1%, S&P 500 E-minis EScv1 were down 28.25 points, or 0.37%, and Nasdaq 100 E-minis NQcv1 were down 238.5 points, or 0.8%.
Brent crude was near a five-month high, as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf. O/R
Investors are closely watching this week's corporate earnings for clues on whether companies can maintain strong growth in the face of mounting macroeconomic risks.
Quarterly results from SpaceX SPCX.O and Netflix NFLX.O are due after the market close on Tuesday, while heavyweights Meta Platforms META.O and Tesla TSLA.O are scheduled to report on Wednesday.
Steel Dynamics STLD.O fell 4.7% after the steelmaker missed third-quarter profit estimates.
General Motors GM.N shares dropped 6.5% after the automaker forecast its annual earnings below analysts' expectations.
Halliburton HAL.N jumped 3.9% after the oilfield services provider topped Wall Street expectations for quarterly profit.
Qualcomm QCOM.O will cut jobs globally in a "performance-focused reduction" following its annual employee reviews, CEO Cristiano Amon told staff in a memo on Monday, Reuters exclusively reported. The chipmaker's shares were down 1%.
3M MMM.N gained 1.8% after the company said it was expanding its data-center partnership with Amazon AMZN.O, and issued a warrant to an Amazon subsidiary to purchase 3M common stock worth over $521 million. The industrial conglomerate also raised its full-year profit forecast on Tuesday.

 (Reporting by Tharuniyaa Lakshmi and Ragini Mathur in Bengaluru; Editing by Shilpi Majumdar)
 ((tharuniyaa@thomsonreuters.com))