Futures higher on strong earnings, global growth hopes

[January 23, 2018]   By Sruthi Shankar

(Reuters) - U.S. stock futures were slightly higher on Tuesday as a bunch of upbeat corporate results and robust global growth expectations lifted sentiment.

The major indexes notched record closing highs on Monday after U.S. lawmakers reached a deal to end a three-day federal government shutdown.

Netflix's <NFLX.O> shares were up 9 percent and set to open at a record high after the video-streaming pioneer beat Wall Street targets for new subscribers in the fourth quarter.

Dow components Verizon <VZ.N> and Johnson & Johnson <JNJ.N> also gained after results.

Verizon rose more than 1 percent after the company reported an increase in quarterly profit, helped by U.S. tax overhaul and phone subscriber additions.

Johnson & Johnson reported quarterly earnings slightly above expectations, as the healthcare company gained from demand for new drugs including cancer and psoriasis treatments.

Of the 55 companies in the S&P 500 that have reported through Monday morning, 80 percent have topped expectations, according to Thomson Reuters I/B/E/S.

At 7:01 a.m. ET (1201 GMT), Dow e-minis <1YMc1> were up 35 points, or 0.13 percent, with 39,023 contracts changing hands.

S&P 500 e-minis <ESc1> were down 2 points, or 0.07 percent, with 159,165 contracts traded.

Nasdaq 100 e-minis <NQc1> were up 0.5 points, or 0.01 percent, on volume of 33,223 contracts.
 

Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., January 8, 2018. REUTERS/Brendan McDermid

The International Monetary Fund revised up its forecast for world economic growth in 2018 and 2019, saying U.S. tax cuts were likely to boost investment in the United States and help its main trading partners.

Markets will be watching the annual gathering of world leaders, policymakers, CEOs and bankers at the World Economic Forum in Davos.

U.S. President Donald Trump is scheduled to address the closing session on Friday and some analysts expect him to strike a protectionist stance on trade.

Trump on Monday approved a 30 percent tariff on washing machines and solar panels, a move that stoked fears among the country's trading partners.

Federal Reserve's Chicago President Charles Evans is expected to speak later in the day.

Among other stocks, GoPro <GPRO.O> fell 4.6 percent after Morgan Stanley downgraded the stock to "underweight".

(Reporting by Sruthi Shankar in Bengaluru:; Editing by Sriraj Kalluvila)

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