Futures rise as earnings
continue to be prime focus
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[October 27, 2016]
By Yashaswini Swamynathan
(Reuters) -
U.S.
stock index futures rose on Thursday as investors focused on the
third-quarter corporate results season which is expected to mark an end
to a year-long earnings recession.
Profits at S&P 500 companies have largely exceeded analysts' estimates
for the third quarter so far, setting up for the first profit growth
since the second quarter of 2015.
Overall earnings for the S&P 500 companies in the latest quarter are
expected to rise 2.2 percent, according to Thomson Reuters I/B/E/S.
Financial companies are expected to outshine the rest of the benchmark
index, while the energy sector will most likely be the top laggard.
Apple's weak results and forecast weighed on the S&P and the Nasdaq on
Wednesday, while a rally in Boeing lifted the Dow.
Investors will also keep an eye on a set of economic data on Thursday,
including a report on initial jobless claims that likely fell to 250,000
last week. Another report is expected to show U.S. manufactured capital
goods likely rose for a fourth straight month. Both reports are due at
8:30 a.m. ET (1230 GMT).
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The data will play into the Federal Reserve's decision on interest rates
at its policy meeting next week. Though a rate hike is not the likely
outcome of the meeting that falls days before the U.S. presidential
election, traders expect the Fed to chalk a more definite path for a
move in December.
Shares of NXP Semiconductors rose 3.3 percent to $101.90 in premarket
trading after Qualcomm said it would buy the chipmaker for $47 billion
in enterprise value. Qualcomm rose 2.1 percent. Fellow chipmaker Micron
Tech also rose.
Google parent Alphabet and online retailer Amazon.com were up
about 0.5 percent ahead of quarterly results scheduled after market
close.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., October 24, 2016. REUTERS/Brendan McDermid
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Tesla
jumped 5.24 percent to $212.83 after the electric carmaker reported its first
quarterly net profit in more than three years.
Bristol-Myers rose nearly 4 percent after the drugmaker reported third-quarter
revenue that beat estimates and increased its full-year profit forecast.
Futures snapshot at 7:00 a.m. ET:
Dow e-minis were up 25 points, or 0.14 percent, with 29,662 contracts
changing hands.
S&P 500 e-minis were up 4.25 points, or 0.2 percent, with 154,670 contracts
traded.
Nasdaq 100 e-minis were up 8.75 points, or 0.18 percent, on volume of 24,336
contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian)
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