Futures lower, but Goldman and J&J earnings limit drop

[July 19, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures were lower on Tuesday, mirroring global stocks, amid a dip in oil prices and as Netflix's weak report threatened to dent optimism about the earnings season.

* However, the futures were off their lows after Dow components Goldman Sachs and J&J reported better-than-expected profits.

* Goldman's shares rose 1 percent to $165 premarket immediately after issuing results. J&J's shares were up 3 percent at $126.80.

* Netflix  slumped 12 percent to $87.18 after adding fewer customers than expected in the second quarter and cutting its growth forecast.

* UnitedHealth shares dropped 1.6 percent to $138.50 on worries about the health insurer's costs related to Obamacare plans, even though its profit beat estimates.

* World shares dipped for only the second time in nine days on Tuesday, due to a drop in oil prices and data that showed Britain's vote to quit the European Union dented German business confidence.

* The S&P and the Dow embarked on a record-breaking run after strong U.S. jobs data on July 8 reaffirmed the health of the economy. That also helped a rally in global stocks.

* That run has faltered in the past couples of days as mixed corporate reports muddied an otherwise upbeat mood about the second-quarter reports.

* While the Dow and S&P 500 indexes made new closing records on Monday, they stayed shy of posting intraday all-times highs as they had done in each of the four previous days.

* The year-on-year decline in earnings of S&P 500 components is now expected to slow to 4.5 percent in the second quarter, from 5 percent in the first, and more companies are expected to beat analysts' estimates, according to Thomson Reuters data.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 18, 2016. REUTERS/Brendan McDermid

* Apart from earnings, investors are also on the lookout for economic data to support a case for a strengthening U.S. economy. Data at 8:30 a.m. ET is expected to show housing starts and building permits likely increased in June.

* Microsoft is expected to report results after the close.

Futures snapshot at 7:40 a.m. ET:

* Dow e-minis <1YMc1> were up 14 points, or 0.08 percent, with 27,304 contracts changing hands.

* S&P 500 e-minis <ESc1> were down 3.75 points, or 0.17 percent, with 142,500 contracts traded.

* Nasdaq 100 e-minis were down 9.75 points, or 0.21 percent, on volume of 18,548 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru)

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