* Energy values boosted by the rise in oil prices
* Southwest falls on the cancellation of many flights
* Big banks are expected to start reporting from Wednesday
* Downward futures: Dow 0.05%, S&P 0.22%, Nasdaq 0.49% (adds comments, bullets; updates prices throughout)
By Shreyashi Sanyal
Oct. 11 (Reuters) – U.S. stock indexes were expected to open lower on Monday, soaring commodity prices adding to inflation concerns, clouding expectations for the third quarter earnings season set to start with Wall Street banks later this week.
Rising raw material costs, labor shortages and other supply chain bottlenecks have raised concerns that high prices will hurt corporate profits.
US oil rose nearly 3% and hit a seven-year high as an energy crisis affecting major economies showed no sign of abating.
But he raised the shares of Chevron Corp, Exxon Mobil Corp and APA Corp between 1.5% and 3.2% in pre-market exchanges.
Apple Inc, Microsoft Corp and Amazon.com Inc mega-caps fell between 0.4% and 0.7%.
“There are undoubtedly significant risks to growth resulting from the recent price hikes, with soaring natural gas prices potentially leading to sharp increases in energy and food spending,” wrote Joshua Mahony, senior market analyst at IG , in a customer note.
“Inflation seems to be there for a while.”
As of 8:40 a.m. ET, Dow e-minis were down 17 points, or 0.05%, S&P 500 e-minis were down 9.75 points, or 0.22%, and e-minis Nasdaq 100 were down 73.25 points, or 0.49%.
The earnings season kicks off this week, with a report from JPMorgan Chase & Co on Wednesday, followed by Bank of America Corp, Morgan Stanley and Citigroup Inc on Thursday and Goldman Sachs Group Inc on Friday.
“There is nervousness ahead of earnings… investors are worried about what companies will say about future earnings expectations,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
“Any shortfall is likely to be due to supply chain disruptions, not having enough product on the shelf, product being in the wrong place or in ports.”
Analysts forecast a 29.6% increase in profits for S&P 500 companies year-on-year in the third quarter, according to IBES data from Refinitiv as of Friday, down from 96.3% growth in the second quarter .
All of the major Wall Street indices ended last week with gains, but investors still expect the Federal Reserve to start cutting back on asset purchases later this year.
After data from last week showed weaker-than-expected job growth in September, investors are now looking to inflation and retail sales figures this week, as well as minutes from the latest Fed meeting which could confirm that a reduction in November has been discussed.
Southwest Airlines Co slipped 2.9% on a report that it canceled at least 30% of its scheduled flights on Sunday.
US bond markets were closed Monday due to Columbus Day. (Reporting by Shreyashi Sanyal and Devik Jain in Bangalore; Editing by Arun Koyyur)