Stock futures rise ahead
of earnings, GDP data
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[October 28, 2016]
By Yashaswini Swamynathan
(Reuters) -
U.S.
stock index futures were slightly higher on Friday ahead of Exxon and
Chevron's quarterly earnings and a report on gross domestic product.
The U.S. Commerce Department issues the first estimate of GDP for the
third quarter at 8:30 a.m. ET. The report is likely to show that the
U.S. economy expanded at a 2.5 percent rate.
The University of Michigan will release its final reading of the
consumer sentiment index, which likely rose to 88.1 in October.
While the Federal Reserve is not expected to raise rates at its policy
meeting next week, analysts expect the central bank to offer more clues
on a potential rate hike in December.
Traders have priced in a mere 8 percent chance of a rate hike at the
Fed's November meeting and a 78.3 percent chance of a move in December,
according to data from CME Group.
The dollar was hovering close to an 11-week high, while oil prices were
marginally lower. [O/R]
Investors will continue to assess corporate earnings in the hope that
the third quarter marks the end of a year-long earnings recession as
more companies beat expectations.
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Profits at S&P 500 companies are expected to rise 2.6 percent, helped
largely by financial companies, according to Thomson Reuters I/B/E/S.
However, energy companies are expected to take a hit.
Wall Street slipped in choppy trading on Thursday as a decline in the
consumer discretionary sector and interest-rate sensitive stocks
outweighed gains in healthcare names.
Amazon.com shares are on track to open at a more than two month low,
falling 4.4 percent at $782.50 after the online retailer warned that
heavy investment would drag on profits in the holiday quarter.
Google parent Alphabet was up 1.2 percent to $827 after the
company's third-quarter revenue and profit beat analysts' expectations.
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Traders work on the floor of the New York Stock Exchange (NYSE)
shortly after the opening bell in New York, U.S., October 17, 2016.
REUTERS/Lucas Jackson
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Drug
distributor McKesson plunged 13.1 to $139.50 percent, taking down peer Cardinal
Health, after reporting a revenue in the second quarter that missed
expectations.
Baker Hughes rose 6.8 percent to $58.26 after GE said it was in discussion with
the oilfield services provider on potential partnerships.
Futures snapshot at 6:59 a.m. ET:
Dow e-minis were up 21 points, or 0.12 percent, with 27,934 contracts
changing hands.
S&P 500 e-minis were up 2.75 points, or 0.13 percent, with 168,852
contracts traded.
Nasdaq 100 e-minis were up 3.75 points, or 0.08 percent, on volume of 25,214
contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
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