August 1, 2017 / 11:33 AM / a year ago

US STOCKS-Futures higher on strong earnings season; Apple in focus

* Futures: Dow 100 pts, S&P 5.25 pts, Nasdaq 20 pts

By Tanya Agrawal

Aug 1 (Reuters) - U.S. stock index futures started the month on a strong note, with Dow futures surging 100 points on Tuesday, driven by a set of upbeat earnings reports and ahead of Apple’s quarterly results.

* Shares of Dow-component Apple were up 0.36 percent in premarket trading. The company is due to report results after the closing bell.

* The Dow industrials hit a record closing high on Monday, helped by Boeing, while selling in technology companies kept the S&P 500 in check and pulled the Nasdaq lower.

* Tech stocks have been volatile in the past few months, following a record-setting rally that has made the sector the best performer this year.

* Investors have been counting on earnings to support high valuations for equities. The S&P 500 is trading at about 18 times earnings estimates for the next 12 months, above its long-term average of 15 times.

* S&P 500 earnings are expected on average to have grown 10.8 percent in the second quarter, according to Thomson Reuters I/B/E/S.

* Economic data expected later in the day includes core PCE numbers - the Federal Reserve’s preferred metric to gauge inflation - for June that is expected to have edged up 0.1 percent from a similar increase in May.

* Softening inflation and incessant political turmoil has hit prospects of another rate hike this year. Traders are pricing in a 47 percent chance of a December hike, compared with a 50 percent probability a month ago, according to CME’s Fedwatch tool.

* Construction spending numbers and manufacturing activity for June are also expected.

* Oil traded near $53 a barrel, close to a two-month high, supported by signs that a persistent inventory glut is starting to ease and strong global demand, although stronger OPEC production kept a lid on gains.

* Pfizer was up 0.63 percent after the drugmaker’s quarterly revenue fell slightly but it increased the mid-point of its profit guidance.

* Factory automation equipment maker Emerson Electric fell 2 percent after the company’s quarterly profit fell.

* Under Armour edged down 0.61 percent after the sportswear maker cut its revenue forecast.

Futures snapshot at 7:08 a.m. ET (1108 GMT):

* Dow e-minis were up 100 points, or 0.46 percent, with 28,695 contracts changing hands.

* S&P 500 e-minis were up 5.25 points, or 0.21 percent, with 147,627 contracts traded.

* Nasdaq 100 e-minis were up 20 points, or 0.34 percent, on volume of 24,865 contracts. (Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D’Silva)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below