Dow, S&P 500, Nasdaq Futures Mixed Amid Rising Oil Prices Ahead Of CPI Data: BAC, RIVN, SLS, GME Stocks In Focus

• Meanwhile, Bank of America faced $1.2 billion in civil penalties after federal financial regulators found widespread, systemic failures in its anti-money laundering and sanctions compliance programs. 
• The semiconductor sector was under pressure Tuesday, with the iShares Semiconductor ETF declining for a sixth straight session. 
• Oil prices climbed after tensions in the Middle East rose as Yemen's Iran-allied Houthis attacked Saudi Arabia, even as the market weighed the ​prospect of increased diesel from Russia.

U.S. stock futures traded mixed late Tuesday as Middle East tensions spiked oil prices ahead of the Consumer Price Index report expected Wednesday. 

As of 10:10 p.m. EDT, Dow futures were down about 0.02%, while the S&P 500 futures gained 0.10% and the Nasdaq-100 futures climbed 0.20%. 

On Tuesday, the three benchmark indexes closed lower. The Dow Jones Industrial Average led the decline, shedding about180 points to close 0.35% lower. The S&P 500 fell 0.02% at close, while the Nasdaq Composite was down 0.15% at the end of the session. 

Key US Market Drivers

The third-quarter earnings season kicked off this week, with Goldman Sachs (GS), Citigroup (C), Wells Fargo (WFC) and JPMorgan Chase (JPM) reporting their results. 

Wells Fargo dropped mixed quarterly results, while Goldman Sachs posted revenue that topped market forecasts and Citi beat profit expectations. JPMorgan Chase fell short of Wall Street estimates for third-quarter profit and top-line figures. 

Meanwhile, federal financial regulators fined Bank of America Corp. (BAC) about $1.2 billion in civil penalties after finding widespread, systemic failures in its anti-money laundering (AML) and sanctions compliance programs, ahead of its Q3 results expected on Wednesday. 

The semiconductor sector was under pressure Tuesday, extending its losses, with the iShares Semiconductor ETF (SOXX) down for a sixth straight session. Micron Technology (MU) fell 3.6% at close, while Applied Materials (AMAT) slumped nearly 7%. Broadcom (AVGO) CEO Hock Tan’s comparison of some sector investment flows to casino gambling further fueled worries about stretched valuations and speculative spending.

On the geopolitical front, tensions in the Middle East rose after Yemen's Iran-allied Houthis attacked Saudi Arabia, even as the market weighed the ​prospect of increased diesel from Russia.

Last week, U.S. President Donald Trump said Putin agreed to supply 300,000 tons of diesel immediately, another 500,000 tons in November, followed by 1 million tons and a further 3 million tons in subsequent deliveries.

Oil prices climbed at the time of writing amid the growing uncertainties. Brent crude futures expiring in December were trading at $106.95 a barrel, up more than 1%, while WTI crude futures expiring in November traded at $95.21 per barrel.

"Supply ​concern stemming from conflict between the Houthis and Saudi Arabia is driving ​prices higher," chief strategist Hiroyuki Kikukawa at Nissan Securities Investment ⁠reportedly told Reuters. 

"However, the expectation that increased Russian diesel exports ​will ease market tightness is likely to limit sharp price movement in either direction," ​Kikukawa added, projecting WTI to trade between $90 and $100 a barrel.

Markets will now watch earnings results from other banks, while September’s CPI reading is also expected to drop Wednesday morning.

Trending Stocks To Watch 

Bank of America Corp. (BAC): Shares of the bank closed 1% lower on Tuesday and continued to fall in the overnight session after it was fined $1.2 billion in penalties for systemic anti-money laundering and sanctions compliance failures.

Rivian Automotive Inc. (RIVN): The automotive company was on the retail radar after reporting record third-quarter deliveries earlier this month, even as markets watch for its Q3 results expected later in October. 

SELLAS Life Sciences Group Inc. (SLS): The biopharmaceutical company is gaining attention as it nears the final analysis of its Phase 3 REGAL trial evaluating its WT1-targeting immunotherapy galinpeimut-S (GPS) in acute myeloid leukemia patients.

GameStop Corp. (GME): The entertainment company’s shares jumped more than 1% overnight after CEO Ryan Cohen bought 844,130 shares of the company’s Class A common stock in open-market transactions.

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) climbed at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined.

Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was trading at 5.215%, and the 30-year Treasury bond yield was 5.561%. 

The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.08% amid ‘bullish’ sentiment. 

Asian markets opened mixed on Wednesday. South Korea's KOSPI, Japan’s Nikkei 225 and China’s SSE Composite were all gaining at the time of writing, while Australian stocks were trading lower at the open.

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