Dow futures gain on Caterpillar earnings

[July 30, 2018]   By Amy Caren Daniel

(Reuters) - Dow futures got a slight boost on Monday after an encouraging report from Caterpillar, a bellwether for global economic activity, while S&P and Nasdaq futures remained under pressure from technology stocks.

Shares of Caterpillar <CAT.N> were up 1 percent in premarket trading after the heavy equipment maker reported record second-quarter profit per share, raised its full-year outlook and quarterly dividend.

Among other industrial companies on the Dow Jones Industrial Average <.DJI>, Boeing <BA.N> was flat and 3M gained 0.3 percent.

The technology sector <.SPLRCT> fell 1.2 percent last week after underwhelming forecasts from Facebook <FB.O>, Intel <INTC.O> and Twitter <TWTR.N> threw up questions about the growth prospects of a sector whose surge has propelled the stock market to record highs.

Apple <AAPL.O> was up marginally and is among the few marquee technology companies yet to report results. It is due to report earnings on Tuesday after the bell.

At 7:33 a.m. ET, Dow e-minis <1YMc1> were up 29 points, or 0.11 percent. S&P 500 e-minis <ESc1> were down 2 points, or 0.07 percent and Nasdaq 100 e-minis <NQc1> were down 21.75 points, or 0.3 percent.

However, with the earnings season in full swing, expectations for second-quarter results remain robust.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 27, 2018. REUTERS/Lucas Jackson

Profits at S&P 500 companies are now expected to have risen 22.6 percent, higher than the estimate of 20.7 percent as of July 1, according to Thomson Reuters I/B/E/S.

Of the 265 S&P 500 companies that have reported earnings so far, 82.3 percent topped analysts' estimates.

The Federal Reserve meets on Tuesday and Wednesday and is expected to keep rates unchanged and reaffirm outlook for further rate hikes. The market has almost fully priced in a September hike and is leaning towards a further move before the end of the year.

American Express <AXP.N> fell 1.1 percent after the Wall Street Journal reported the company raised currency conversion rates for its business clients without notifying its customers.

US Foods Holding <USFD.N> dropped 4.1 percent, in low volumes, after the food distribution company said on it would buy SGA's Food Group of Cos for $1.8 billion.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta)

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