US stock futures fall after disappointing results from industrials

U.S. stock futures fell on Thursday, as some industrials reported disappointing results, while the Federal Reserve's minutes showed officials broadly agreed on raising interest rates further, fanning concerns that contributed to last week's brutal selloff.

Shares of Textron fell 8 per cent in premarket trading after the Cessna jet maker reported a lower-than-expected quarterly profit, hit by a slump in sales of its turboprop aircraft.

Sealed Air Corp shares tumbled 9.3 per cent after the packaging company lowered its full-year profit outlook due to higher-than-expected raw material and freight costs.

Textron and Sealed Air were the top decliners among S&P 500 companies before the bell. Equipment rental company United Rentals fell 4.7 per cent after its results.

Lindsay Corp dropped 5 per cent after the water filtration equipment maker warned weakness in North America would continue next year in part due to tariffs.

The Fed's view, detailed in the minutes of its September meeting released on Wednesday, bolstered expectations of a fourth interest rate hike in December and more next year, despite President Donald Trump's sharp criticism.

The hawkish commentary also sent yields on the benchmark 10-year Treasury notes back to multi-year highs touched last week, which contributed to the sell-off in equities.

"If interest rates continue to move higher from their current levels, investors will become even more reluctant to buy the dips in stocks," Hussein Sayed, chief market strategist at FXTM, wrote in a note.

At 8:49 a.m. ET, Dow e-minis were down 90 points, or 0.35 per cent. S&P 500 e-minis was down 10.75 points, or 0.38 per cent and Nasdaq 100 e-minis were down 32.75 points, or 0.45 per cent.

Along with rising borrowing costs, investors also have to weigh the effect of tariffs and wage pressure on corporate profit as the third-quarter earnings season gains steam.

Profits at S&P 500 companies are expected to have risen 21.9 per cent in the quarter, according to I/B/E/S Refinitiv. Of the 51 companies that have reported so far, 84.3 per cent have beaten analyst expectations.

Among gainers were Alcoa's shares, which rose 4.3 per cent after the top U.S. aluminium producer reported a better-than-expected quarterly profit, as a series of supply hits boosted alumina prices.

Philip Morris gained 2.5 per cent after Marlboro cigarette maker topped analysts' estimates for quarterly profit and sales.