Stock futures rise as Alphabet gains, lifts FAANG stocks
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[July 24, 2018]
By Amy Caren Daniel
(Reuters) - U.S. stock index futures rose
on Tuesday, as Alphabet's strong results lifted other high-growth
technology companies, adding to a robust earnings season in the backdrop
of a U.S.-China trade war and a strengthening dollar.
Shares of Google-parent Alphabet <Googol>, part of the so-called FAANG
stocks, jumped 4.6 percent in premarket trading and were set to scale a
record high after the company reported better-than-expected quarterly
revenue and profit as expenses from its Google search business grew more
slowly.
Other FAANG stocks also rose. Facebook <FB.O> climbed 1.9 percent, while
Amazon <AMZN.O> gained 1.4 percent. Twitter <TWTR.N> gained 0.9 percent.
Eli Lilly <LLY.N> jumped 6.6 percent after the company said it would
take its animal health unit public and posted a better-than-expected
quarterly profit.
Biogen <BIIB.O> rose 4.7 percent after the drugmaker reported a
better-than-expected quarterly profit and raised its forecast for 2018
adjusted earnings.
At 6:58 a.m. ET, Dow e-minis <1YMc1> were up 100 points, or 0.4 percent.
S&P 500 e-minis <ESc1> were up 6.25 points, or 0.22 percent and Nasdaq
100 e-minis <NQc1> were up 12.75 points, or 0.17 percent.
The earnings season has been robust to date, with 82 percent of the 90
S&P 500 companies that have posted results topping profit estimates,
according to Thomson Reuters I/B/E/S.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York, U.S., July 16, 2018. REUTERS/Brendan McDermid
Analysts estimate of profit growth have risen to about 22 percent for the second
quarter, up from 20.7 percent at the start of the month.
Investors will continue to focus on the impact of a strong dollar and the trade
dispute between the United States and China on future earnings. The world's two
largest economies have already imposed tariffs on $34 billion worth of each
other's imports.
Whirlpool <WHR.N> tumbled 9.9 percent, in low volumes, after reporting weak
quarterly results and cutting its full-year forecasts, blaming lower volumes and
higher raw material costs, especially in EMEA.
Harley-Davidson <HOG.N>, at the center of the brewing trade war between the
United States and the European Union, rose 1.1 percent in low volumes after its
profit topped estimates as sales of bikes overseas edged up, although it warned
new EU tariffs would squeeze margins.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila)
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