Futures rise a day after S&P 500 hits record high

[July 12, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures were higher on Tuesday, a day after the S&P 500 <.SPX> hit a record high as investor optimism was propelled by a set of strong economic data.

* The benchmark index, which came close several times this year to topping its May 2015 record, finally broke through on Monday to a new high of 2,143.16.

* The Nasdaq hit its 2016 high, also on Monday, while the Dow surged to its highest level in more than 13 months, buoyed by robust monthly jobs data on Friday that indicated a strong labor market.

* U.S. Treasury yields, which have been hovering around record lows, have also made equities more attractive.

* Investors will now turn their attention to U.S. corporate earnings. Strong corporate reports, along with low expectations for a hike in interest rates anytime soon, should keep the momentum in the market going.

* While profits of S&P 500 companies are expected to have fallen 5 percent in the second quarter, mirroring the first, analysts expect a return to growth throughout the second half of the year, according to Thomson Reuters data.

* Alcoa, kicking off the earnings season, reported a smaller-than-expected drop in quarterly profit. The aluminum producer's shares were up nearly 4 percent premarket.

* Seagate jumped 12.3 percent to $27.05, topping the S&P 500 premarket, after the hard-disk drive maker estimated quarterly results that beat analysts' expectations.

* Wholesale inventories, due at 10:00 a.m. ET, are likely to have risen 0.2 percent in May. April's 0.6 percent rise was the biggest increase in 10 months that prompted economists to raise their second-quarter economic growth estimates.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 11, 2016. REUTERS/Brendan McDermid

* A host of Federal Reserve officials, including Governor Daniel Tarullo and the presidents of the St. Louis and Cleveland Feds, are scheduled to speak at separate events.

Futures snapshot at 6:55 a.m. ET:

* Dow e-minis were up 85 points, or 0.47 percent, with 21,351 contracts changing hands.

* S&P 500 e-minis were up 11 points, or 0.52 percent, with 182,815 contracts traded.

* Nasdaq 100 e-minis were up 25.25 points, or 0.56 percent, on volume of 18,130 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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