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* Coca-Cola up after raising 2019 forecast
* United Tech gains on quarterly profit beat
* Trump, U.S. Congress leaders reach deal on debt limit
* Futures up: Dow 0.39%, S&P 0.39%, Nasdaq 0.48% (Changes comment, updates prices)
By Amy Caren Daniel
July 23 (Reuters) - Wall Street was set to open higher on Tuesday lifted by upbeat earnings from blue-chip companies including Coca-Cola and United Technologies, that soothed concerns over the pace of economic growth.
Over the last 24 hours investors have reacted positively to a series of second-quarter reports, albeit often against expectations for profits, which have been lowered due to this year’s concerns over growth.
“Analysts notoriously underestimate how well these companies will do, and part of it is that companies intentionally lowball the analysts so that they can beat their estimates,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
Coca-Cola Co shares rose 3.5% after the fizzy drink maker beat quarterly earnings expectations and raised its full year organic revenue forecast.
Fellow Dow component United Technologies Corp gained 2.4% after the industrial conglomerate raised its full-year profit and sales outlook, helped by an increase in demand for aircraft parts and spares.
President Donald Trump and U.S. congressional leaders reached a deal on Monday on a two-year extension of the debt limit and federal spending caps that would avert a feared government default later this year, but add to rising budget deficits.
“I think it is a very positive thing that they have reached a budget deal. That pushes concerns of a debt ceiling and the budget beyond the next presidential election, which is one less thing for the market to worry about,” Frederick said.
The overall profits of S&P companies are now estimated to rise about 1% in the second quarter, according to Refinitiv IBES data, improving from estimates of a small decline earlier.
Of the S&P 500 companies, 30% are expected to report earnings this week and among the investor favorite FAANG group - Facebook Inc Amazon.com Inc and Google-parent Alphabet Inc will report on Wednesday and Thursday.
Hopes that the Federal Reserve will adopt a looser monetary policy to counter the impact of a protracted trade war have helped Wall Street’s main indexes scale new record levels. The S&P 500 is now just 1% shy of its all-time high.
At 8:42 a.m. ET, Dow e-minis were up 107 points, or 0.39%. S&P 500 e-minis were up 11.75 points, or 0.39% and Nasdaq 100 e-minis were up 38.25 points, or 0.48%.
The European Central Bank is expected to cut interest rates on Thursday by 10 basis points and the Fed, which will meet a few days later, is widely expected to lower rates by at least 25 basis points.
Travelers Cos Inc was down 1.5% after the insurer missed estimates for second-quarter profit, as weather-related losses led to an 18% drop in underwriting gain.
Hasbro Inc jumped 6.2% after the toymaker reported better-than-expected quarterly revenue, helped by higher demand for action toys.
Intel Corp gained 1.2% after a report that Apple Inc is in advanced talks to buy its smartphone-modem chip business. The iPhone maker’s shares rose 0.7%. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta)