US STOCKS-Futures slip as U.S. calls for pause in J&J's single-dose COVID-19 vaccine

  • Reuters
US STOCKS-Futures slip as U.S. calls for pause in J&J's single-dose COVID-19 vaccine
Credit: © Reuters.

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* J&J falls after health agencies' recommendation

* Big bank earnings to kick off from Wednesday

* Futures: Dow down 0.33%, S&P dips 0.24%, Nasdaq off 0.04% (Adds comment, details; updates prices)

By Medha Singh and Shivani Kumaresan

April 13 (Reuters) - U.S. stock index futures fell on Tuesday as U.S. federal health agencies recommended pausing the use of Johnson & Johnson (NYSE: JNJ )'s single-dose COVID-19 vaccine, while investors awaited a reading on a key inflation report.

The call for pause in vaccine distribution comes after six recipients developed a rare disorder involving blood clots. J&J's shares shed 2.8% premarket, with the U.S. Centers for Disease Control and Prevention set to hold a meeting on Wednesday to review the cases. operators, airlines and hotel chains, which are poised to benefit from an economic reopening driven by vaccine distributions, dropped.

Carnival (NYSE: CCL ) Corp CCL.N , Royal Caribbean Cruises Ltd (NYSE: RCL ) RCL.N , American Airlines AAL.O , United Airlines UAL.O and Marriott International Inc MAR.O shed between 1.8% and 3.4%.

"We don't think it's a major hiccup at this time," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.

"We need more time to study it. Its impact on reopening is minimal at the point. We still have two other vaccines."

Shares of rival U.S. vaccine makers Pfizer Inc (NYSE: PFE ) PFE.N and Moderna Inc MRNA.O rose 1.6% and about 6%.

Focus now turns to the Labor Department's data that is expected to show U.S. consumer prices rose 0.5% in March from 0.4% in February. The report is due at 8:30 a.m. ET (1230 GMT).

At 07:52 a.m. ET, Dow E-minis 1YMcv1 were down 112 points, or 0.33%, S&P 500 E-minis EScv1 were down 10 points, or 0.24%. Nasdaq 100 E-minis NQcv1 were down 5 points, or 0.04%

A steady retreat in bond yields since the start of this month on expectations that a spike in inflation this year would be transitory has revived demand for high-growth tech stocks and sent the S&P 500 and the Dow to record highs.

Investors are also marking time ahead of the start of the first-quarter earnings season, with results from Goldman Sachs (NYSE: GS ) GS.N , JPMorgan (NYSE: JPM ) JPM.N and Wells Fargo (NYSE: WFC ) WFC.N on deck on Wednesday.

Analysts expect earnings for S&P 500 firms to jump 25% from a year ago, driven by strength in consumer discretionary and financial companies, according to Refinitiv IBES data.

Among stocks, U.S.-listed shares of e-commerce firm JD.O and search giant Baidu BIDU.O fell 2.7% and 2% respectively as China's market regulator warned internet companies to stop using any banned practices. and blockchain-related firms including Riot Blockchain RIOT.O and Marathon Digital Holdings MARA.O jumped 8.3% and 7.5% as bitcoin prices BTC=BTSP soared 5%, a day ahead of listing of Coinbase, the largest U.S. cryptocurrency exchange.

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