Reuters
Published Jul 20, 2011 08:12AM ET
* Apple gains after blowout results, Nasdaq futures higher
* United Tech ups outlook, Textron profit tops consensus
* AMR, Boeing rise on deal to purchase 460 planes
* Futures up: Dow 62 pts, S&P 7.4 pts, Nasdaq 21.5 pts
* For up-to-the-minute market news see [STXNEWS/US]
(Updates prices, adds analyst comment)
By Ryan Vlastelica
NEW YORK, July 20 (Reuters) - U.S. stock index futures rose
on Wednesday as continued strong earnings, including from Apple
Inc
Equities have struggled against a number of headwinds
recently, including weak data on the U.S. labor market and
concerns about sovereign debt problems in the United States and
Europe. On Tuesday, however, strong results from such
bellwethers as International Business Machines Corp
"Just about everyone who has reported results has beaten expectations, and that's enough to offset the global macro headwinds that are out there," said Jack De Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.
"This market is all about earnings, and its relieving the concerns out there about the temporary weakness in the economy and about valuation."
Tech giant Apple reported after Tuesday's close that it posted third-quarter revenue that was far above expectations, helped by blockbuster sales of its iPhone and its Asian business. The stock gained 5.9 percent to $398.98 in premarket trading. For details, see [ID:nN1E76I1K8]
Among the early reporting companies on Wednesday was Dow
component United Technologies Inc
Shares of Textron rose 2.8 percent to $22.75 before the bell while United Tech was up 1.6 percent to $90.25.
Apart from earnings, AMR Corp
Also, Ecolab Co
S&P 500 futures SPc1 rose 7.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 added 62 points and Nasdaq 100 futures NDc1 rose 21.5 points.
Yahoo Inc
Among the many companies still due to report earnings on
Wednesday are American Express Co
Investors will also be looking at June existing home sales data, which are due 10:00 EDT (1400 GMT) and are seen rising from the previous month. On Tuesday, housing starts that were much stronger than expected contributed to the market's positive tone.
The growing optimism over earnings season comes as market participants also gain more confidence in the talks for a debt deal in the United States. Markets gained momentum late in the day on Tuesday after President Barack Obama suggested progress was being made toward a $3.75 trillion deficit reduction deal centered around entitlement reform. [ID:nN1E76H1Y0]
The White House and Congress need an agreement that includes an increase in the federal debt ceiling by Aug. 2 or the United States could default on its debt.
Obama's comments, along with the earnings, sparked a sharp equity rally on Tuesday, with all indexes rising more than 1.6 percent and the Nasdaq climbing more than 2 percent.
(Editing by Chizu Nomiyama)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.