futures higher in wake of sell-off, GE results
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[July 18, 2014]
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stock index
futures rose modestly on Friday, putting the S&P 500 on track to
bounce from its biggest decline since April 10, ahead of data on
Investors will continue to monitor geopolitical tensions, as world
leaders demanded an investigation after a Malaysian airliner was
downed at the Ukraine-Russia border and Israel announced the start
of a Gaza ground campaign on Thursday.
The CBOE Volatility index surged 32 percent to 14.54 in the prior
session, its biggest jump since April 2013, as the conflict in both
the Middle East and Eastern Europe escalated. However, the index
still remains well below its historical average of around 20.
General Electric advanced 1.1 percent to $26.90 before the opening
bell after the conglomerate posted growth in second-quarter earnings
that matched expectations.
Google Inc gained 2.1 percent to $593.10 in premarket after the
world's No.1 Internet search company posted second-quarter results
and said its chief business officer would leave the company.
IBM shares slipped 1.5 percent to $189.70 in light premarket trade
after the world's largest technology company reported quarterly
earnings that beat analysts' expectations but its software business
grew less than expected.
Data expected on Friday includes the Thomson Reuters/University of
Michigan's preliminary July reading on consumer sentiment at 9:55
a.m. Expectations call for a reading of 83, slightly higher than the
82.5 result in June.
S&P 500 e-mini futures were up 4.5 points and fair value - a formula
that evaluates pricing by taking into account interest rates,
dividends and time to expiration on the contract - indicated a
higher open. Dow Jones industrial average e-mini futures rose 16
points and Nasdaq 100 e-mini futures added 11 points.
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Other S&P 500 companies due to report Friday include Honeywell and
Kansas City Southern
S&P 500 companies' profits are expected to grow 4.9 percent in the
second quarter, according to Thomson Reuters data, down from the 8.4
percent growth forecast at the start of April. Revenue is seen up 3
Thomson Reuters data also shows that of 66 companies in the S&P 500
that have reported earnings through Thursday morning, 68.2 percent
have topped Wall Street expectations, roughly in line with the 67
percent rate for the past four quarters and above the 63 percent
rate since 1994.
European and Asian stocks fell, after the Malaysian passenger plane
was shot down over eastern Ukraine, stoking tensions between Russia
and the West.
(Editing by Bernadette Baum)
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