Futures rise on positive earnings; GDP data awaited
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[October 28, 2021] By
Devik Jain
(Reuters) - U.S. stock index futures edged
higher on Thursday, led by gains in Caterpillar, Merck and Ford after
upbeat quarterly earnings, while investors awaited data that will likely
throw light on the pace of the economic recovery.
The Commerce Department's advance gross domestic product report, due at
08:30 a.m. ET, will likely show the U.S. economy grew at a 2.7%
annualized rate last quarter, its slowest pace in more than a year as
COVID-19 infections flared up, upending global supply chains and fueling
labor and goods shortages.
Market participants have been closely watching outlook from corporate
America for clues on how companies are mitigating these challenges as
they report their quarterly results.
Ford Motor Co jumped 10.2% in premarket trading after the carmaker
reported a stronger-than-expected third-quarter profit and raised its
full-year earnings forecast as strong demand for its trucks helped
offset the hit from a global semiconductor shortage.
Shares of another Detroit automaker General Motors rebounded 1.7% from a
5.4% decline on Wednesday after its results.
Caterpillar Inc added 2.8% after posting a rise in third-quarter
adjusted profit, while a 55% rise in quarterly profit reported by
drugmaker Merck & Co Inc helped its shares gain 1.4%.
Stellar earnings report have driven the benchmark S&P 500 index and the
Dow Jones Industrial Average to record highs this week, while bringing
the tech-heavy Nasdaq to just 1.1% below its all-time peak hit on Sept
7.
Profits for S&P 500 companies are expected to grow 37.6% year-on-year in
the third quarter, up from an expected 29.4% rise at the start of
earnings season, according to data from Refinitiv.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., October 27, 2021. REUTERS/Brendan McDermid
Focus will also be on earnings reports from iPhone maker Apple Inc and ecommerce
giant Amazon.com after market close on Thursday, wrapping up a largely upbeat
reporting season for mega-cap technology stocks.
Google owner Alphabet Inc, Tesla Inc, Microsoft Corp and Facebook Inc rose
between 0.2% and 2.9%.
At 6:53 a.m. ET, Dow e-minis were up 78 points, or 0.22%, S&P 500 e-minis were
up 13.25 points, or 0.29%, and Nasdaq 100 e-minis were up 85.25 points, or
0.55%.
In the run-up to the Federal Reserve's policy meeting next week, market focus
has also moved beyond pricing the likely taper of asset purchases this year and
onto the timing of an interest rate hike next year.
The central bank's policy hinges on inflation expectations and a labor market
recovery, with readings on weekly jobless claims and the Fed's favored inflation
gauge, the core PCE price index, also on the radar.
Separately, The Washington Post reported U.S. President Joe Biden is expected to
announce on Thursday that Democrats have agreed on a revised framework for his
social spending plan that he expects will gain the support of all Democrats.
EBay Inc slipped 5.6% after the e-commerce firm projected downbeat
holiday-quarter revenue.
(Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
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