NEW YORK (Reuters) - U.S. stock index
futures rose on Wednesday, after better-than-expected economic data
in China and ahead of the latest batch of corporate earnings.
The world's second-largest economy grew 7.5 percent in the second
quarter, just above the 7.4 percent estimated by analysts, supported
by the Chinese government stimulus.
Also supporting early gains was chipmaker Intel, which rose 5
percent to $33.30 in premarket following second-quarter results that
topped analysts' estimates. The company also forecast third-quarter
revenue above Wall Street's expectations.
Bank of America shed 0.9 percent to $15.67 in premarket after the
second-largest U.S. bank by assets reported a 43 percent drop in
second-quarter profit as mortgage revenue fell and litigation costs
increased.
IBM will partner exclusively with Apple Inc <APPL.O> to sell iPhones
and iPads loaded with applications geared at enterprise clients this
fall, the companies announced late Tuesday. IBM shares gained 2.2
percent to $192.59 and Apple advanced 2.5 percent to $97.72 in
premarket.
But Yahoo shares were off 3.7 percent to $34.30 after its
disappointing second-quarter results and outlook, although the
company pledged to pay its shareholders at least half the proceeds
from Alibaba Group Holding Ltd's mega-IPO this fall.
Merger and acquisition activity continued on Wall Street. Time
Warner shares jumped 13.1 percent before the bell after the New York
Times reported Twenty-First Century Fox made an $80 billion
takeover offer for the company that was turned down.
Italy's GTECH will buy U.S. slot machine maker International Game
Technology for $6.4 billion including debt. IGT shares jumped 10.1
percent to $17.07 before the opening bell.
S&P 500 e-mini futures were up 6.5 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
54 points and Nasdaq 100 e-mini futures added 20.25 points.
Economic data expected on Wednesday includes producer prices for
June at 8:30 a.m, June industrial production at 9:15 a.m. and the
National Association of Home Builders/Wells Fargo housing market
index for July at 10:00 a.m.
After the closing bell, eBay and SanDisk are among S&P 500 companies
due to report earnings.
S&P 500 companies' profits are expected to grow 5.2 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
3.2 percent.
European equity markets recovered from losses in the previous
session as a rebound in Banco Espirito Santo and in mining stocks
lifted the region's bourses.
Asian stocks held steady after China reported economic growth that
was just ahead of market expectations, drawing a sigh of relief from
investors.
