US STOCKS-Futures slide as megacaps fall; eyes on economic data

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)

*

Meta Platforms forecast 2024 spending above estimates

*

UPS lowers FY revenue forecast

*

Ford reaches tentative labor deal with UAW

*

Futures down: Dow 0.46%, S&P 0.73%, Nasdaq 1.01%

(Updated at 7:00 a.m. ET/ 1100 GMT)

By Ankika Biswas and Shashwat Chauhan

Oct 26 (Reuters) - Futures tracking Wall Street's main stock indexes fell on Thursday, as megacap stocks eased due to elevated Treasury yields, while investors took stock of recent Big Tech earnings and awaited more economic data.

Even after its third-quarter results beat expectations, Meta Platforms dropped 3.1% in premarket trading as the Facebook parent forecast 2024 spending above estimates and suggested the Middle East conflict could dampen fourth-quarter sales.

With the 10-year Treasury yield hovering near the 5% mark, megacaps Tesla and Microsoft fell 2.7% and 0.8%, while Amazon.com shed 1.6% ahead of its results, due after the closing bell.

Google-parent Alphabet lost 1.9%, adding to its 9.5% tumble on Wednesday after it posted disappointing cloud services revenue.

All three major U.S. stock indexes slumped in the previous session, with the S&P 500 closing below the closely watched 4,200 level, while the Nasdaq touched a five-month low.

On the earnings front, United Parcel Service dipped 3.5% after lowering its full-year revenue forecast, while Royal Caribbean Group rose 2.5% after the cruise company raised its full-year profit forecast.

Hasbro fell 8.2% after the maker of Transformers action figures cut its annual revenue forecast. Mattel slipped 9.4% after the Barbie doll-maker warned of slowing demand for the industry heading into the crucial holiday season.

So far, 80% of the 146 S&P 500 companies that have reported results have beat earnings expectations, LSEG data showed on Wednesday.

On tap is a slew of economic data -- including September's durable goods, an advance estimate of third-quarter gross domestic product and weekly jobless claims -- that will give cues about the economy's health and the outlook for interest rates.

"Recession talk is on the back foot and the return of a Federal Open Market Committee (FOMC) risk for another hike follows," Bob Savage, head of markets strategy and insights at BNY Mellon said in a note.

Traders see a 97% chance of the Federal Reserve holding rates steady at its meeting on Nov. 1 and a roughly 69% chance for the same at its December meeting, according to CME's FedWatch tool.

At 7:00 a.m. ET, Dow e-minis were down 151 points, or 0.46%, S&P 500 e-minis were down 30.75 points, or 0.73%, and Nasdaq 100 e-minis were down 146.25 points, or 1.01%.

On the geopolitical front, Israel bombarded the Gaza Strip, preparing for a ground invasion it says is aimed at annihilating the Palestinian militant group Hamas as Russia warned the conflict could spread beyond the Middle East.

Among other stocks, Ford Motor advanced 2.5% after reaching a tentative labor deal with the United Auto Workers union to end a strike.

Align Technology tanked 23.9% after the dental company lowered its full-year revenue forecast. (Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)