Futures edge higher as strong earnings offset trade
worries
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[August 06, 2018]
By Sruthi Shankar
(Reuters) - U.S. stock futures were
marginally higher on Monday as strong corporate earnings countered
worries about escalating trade tensions between the United States and
China.
China, last week, proposed a set of differentiated tariffs on $60
billion worth of U.S. imports, retaliating to the Trump administration's
plans of 25 percent tariffs on $200 billion worth of Chinese imports.
The months-long dispute has roiled financial markets across the globe,
but strong U.S. earnings have helped allay some of the concerns.
Over 400 S&P 500 companies have reported so far, and 78.6 percent have
topped earnings estimates. That is well above the average of 72 percent
in the past four quarters.
The S&P 500 <.SPX> ended up 0.8 percent last week, closing a five-week
run of gains, its first such winning streak this year.
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"If the first four weeks of earnings season are any indication, we
should see the tide continue to rise, though headline risk associated
with trade and tariffs continue to play a pivotal role in keeping any
significant move to the upside well contained," Peter Kenney, founder of
Strategic Board Solutions LLC in New York, wrote in a morning note.
With just 44 companies set to report this week and the calendar light on
economic data, investors will likely focus on trade issues.
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![](../images/080618pics/busine26.jpg)
A trader works on the floor of the New York Stock Exchange shortly
after the opening bell in New York, U.S., July 31, 2018.
REUTERS/Lucas Jackson
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The S&P 500 e-minis <ESc1> were up 2.5 points by 7:11 a.m. ET. The Dow e-minis
<1YMc1> were up 33 points and the Nasdaq 100 e-minis <NQc1> were up 12.75
points.
Berkshire Hathaway Inc <BRKb.N> rose 2.13 percent in premarket trading after the
Warren Buffett-led conglomerate reported a 67 percent surge in quarterly
operating profit.
Qualcomm <QCOM.O> and Advanced Micro Devices <AMD.O> rose about 1.5 percent each
following positive brokerage recommendations.
Newell Brands <NWL.N> dropped 2.1 percent after the maker of Sharpie markers
reported a fall in quarterly sales.
PepsiCo <PEP.O> dipped 0.5 percent in thin trading after the company said Chief
Executive Officer Indra Nooyi would step down in October.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
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