Futures edge higher on upbeat earnings

Business

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 21, 2019. REUTERS/Brendan McDermid

(Reuters) – U.S. stock index futures rose on Tuesday, after another batch of strong corporate earnings eased concerns over domestic growth and the fallout from the prolonged U.S.-China trade war.

The benchmark S&P 500 index .SPX closed above 3,000 points on Monday, just shy of its record high hit in July, as investors also cheered signs of progress toward a resolution of the bitter spat between the world’s two biggest economies.

Strong earnings reports since last week have provided some respite to equity markets, which were also rattled over the past few months by geopolitical worries and a slowing global economy.

Procter & Gamble Co (PG.N) gained 4.6% in premarket trading after raising full-year forecasts and beating Wall Street estimates.

Biogen Inc (BIIB.O) surged 37.4% after the drugmaker announced a surprise plan to file for U.S. regulatory approval for its Alzheimer’s treatment.

Harley-Davidson Inc (HOG.N) rose 6.7% as it beat quarterly profit expectations, while United Technologies Corp (UTX.N) gained 1.7% on a forecast raise.

Of the 75 S&P 500 companies reporting results by Monday, over 80% had topped Street estimates. Still, analysts expect the first earnings contraction since 2016 in the backdrop of a slowing domestic economy and the trade war.

The threat of tariffs on toys imported from China hit toymaker Hasbro Inc’s (HAS.O) quarterly profit as shipping and warehousing costs soared. Its shares tumbled 9.5% before the bell.

At 7:31 a.m. ET, Dow e-minis 1YMcv1 were up 20 points, or 0.07%. S&P 500 e-minis EScv1 were up 1.5 points, or 0.05% and Nasdaq 100 e-minis NQcv1 were up 12.25 points, or 0.15%.

Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila

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