US STOCKS-S&P 500, Dow set for higher open as Lilly, Super Micro earnings cushion software jitters

By Pranav Kashyap and Twesha Dikshit

Feb 4 (Reuters) - The S&P 500 and the Dow were poised for a firmer open on Wednesday, following upbeat results from Eli Lilly and Super Micro Computer, while investors avoided big bets on software and cloud stocks after a bruising selloff in the previous session.

The software and services index .SPLRCIS, home to several leading cloud and software companies, fell for a fifth straight session on Tuesday, down more than 12% over the period, its steepest stretch of losses since March 2020.

The losses reflect persistent concerns about how rapid advances in artificial intelligence could upend long-standing software business models.

CrowdStrike CRWD.O was marginally lower, while Intuit INTU.O and Adobe ADBE.O were down over 1.3% each, in premarket trading.

Meanwhile, Nasdaq futures lagged as Advanced Micro Devices AMD.O slid 9.8%, after the company forecast a slight dip in quarterly revenue.

But strong gains in Eli Lilly LLY.N and Super Micro Computer lent support to the market. Shares of the drugmaker rose 8.9% after the company forecast 2026 profit above Wall Street expectations.

Super Micro Computer's SMCI.O shares jumped 9.8% after the company raised its annual revenue forecast on sustained demand for its AI-optimized servers as companies ramp up data-center capacity.

"Strong earnings support the market's valuations and what we've seen is that the earnings growth has broadened across more sectors than just technology," said Sean Clark, chief investment officer at Clark Capital.

At 08:31 a.m. ET, Dow E-minis YMcv1 were up 123 points, or 0.25 S&P 500 E-minis EScv1 were up 8 points, or 0.12%, and Nasdaq 100 E-minis NQcv1 were down 69 points, or 0.27%.

Alphabet GOOGL.O rose 1.1% ahead of its results, due after markets close, while Amazon AMZN.O edged up 0.2% before its earnings report on Thursday.

Markets will scrutinize the results from the "Magnificent Seven" for evidence that massive capital-spending plans are yielding the kind of returns that justify their lofty valuations.

The increasingly crowded AI trade has also pushed investors toward undervalued small caps and other overlooked corners of the market.

"We have seen a leadership shift from large-cap growth technology companies into other sectors, such as small caps, that have assumed a leadership role. Technology and large-cap growth stocks are taking a little bit of a backseat," Clark added.

The small-cap Russell 2000 .RUT and the mid-cap S&P 400 .SP400 ended up 0.3% and 0.2% higher, respectively, on Tuesday. The Russell 2000 was on track for a weekly gain of more than 1%, compared to a modest decline for the S&P 500.

Mondelez MDLZ.O forecast a subdued year on Tuesday, warning that price increases were deterring cost-conscious shoppers amid macro uncertainty. The Cadbury owner's shares fell 3.5% in premarket trading.

Chipotle Mexican Grill CMG.O slid 6.4% after the burrito chain said it expects to raise menu prices this year, while projecting margins to remain under pressure as diners pull back on eating out.

SHUTDOWN ENDS, DATA AWAITED

U.S. President Donald Trump on Tuesday signed a spending deal into law, ending a partial government shutdown that had snarled the release of key labor-market data this week.

The government is now expected to announce when the key nonfarm payrolls and JOLTS data will be released. In their absence, markets would have to rely on private data providers.

U.S. private payrolls increased less than expected in January, the ADP's national employment report showed.

S&P Global's composite PMI final figures are due shortly after markets open.