By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures added to gains on
Tuesday after benign June inflation data and indicated a higher
open on Wall Street.
Futures for the Dow Jones Industrial Average (DJU4) rose 56
points, or 0.3%, to 17,039, while those for the S&P 500 index
(SPU4) picked up 9 points, or 0.4%, to 1,975. Futures for the
Nasdaq 100 index (NDU4) climbed 19.50 points, or 0.5%, to
3,945.25.
Investors are facing a busy day both on the data and the
corporate front, with second-quarter results set to come through
thick and fast. McDonald's Corp. reported ahead of the market open
and results from Apple Inc. and Microsoft Corp., are due after the
closing bell.
The June inflation report showed that core prices rose 0.1%
after a sharp 0.3% gain in May. U.S. Overall consumer prices rose a
seasonally adjusted 0.3% in June because of higher gasoline prices,
the Labor Department said Tuesday.
Real or inflation-adjusted hourly wages were flat in June at
$10.30. Real wages have declined 0.1% over the past 12 months.
Later Tuesday morning, the National Association of Realtors will
report on existing-home sales at 10 a.m. Eastern Time. Economists
expect an annual rate of 5 million for June, compared with a 4.89
million pace in May. The FHFA house-price index is also due in the
morning.
A raft of earnings reports should help set the tone for the
trading day. Ahead of the bell, Coca-Cola (KO) shares fell more
than 1% after the beverage giant reported second-quarter sales that
fell short of forecasts, while profit topped estimates.
McDonald's (MCD) shares dropped 2% premarket after the fast-food
restaurant chain reported earnings that came in below
expectations.
Verizon Communications Inc. (VZ) said second-quarter profit grew
sharply thanks to its recent acquisition of Verizon Wireless.
Shares of Comcast Corp. (CMCSA) rose 2.2% premarket after the
cable company said second-quarter profit rose 15%, in part as it
reduced its rate of video-subscriber losses.
Industrial and aerospace products maker United Technologies
Corp. (UTX) posted quarterly earnings and sales that surpassed
expectations. It also raised its full-year earnings forecast.
Shares were up 1.4% ahead of the opening bell.
DuPont Co. (DD) said second-quarter earnings rose nearly 4%,
though operating earnings fell amid softness for the company's
agriculture segment. Shares were up slightly.
One headline earnings report, however, isn't out until after the
closing bell. Apple (AAPL) will release fiscal third-quarter
results, and it is forecast to have earned $1.23 a share for the
quarter ended in June, which reflects the 7-for-1 stock split that
took effect June 9. During the same period a year ago, Apple earned
a pre-split $7.47 a share.
Microsoft (MSFT) also reports after the markets close. Also
read: Apple, Microsoft to awaken 'comfortably numb' markets.
Herbalife Ltd. (HLF) was fractionally lower ahead of the open,
set to extend losses from Monday when shares tumbled after activist
investor Bill Ackman said he plans to deliver a "deathblow" to the
company, by exposing it as a "massive fraud." The presentation is
planned for Tuesday at 10 a.m. Eastern.
Amazon.com Inc. (AMZN) lost 1.6% in premarket trade after
Citigroup cut its view on the online retailer to neutral from
buy.
In other company news, CIT Group Inc. (CIT) said it will buy
OneWest Bank for $3.4 billion in cash and stock.
Aside from corporate and data news, the conflict between Russia
and Ukraine remains in the spotlight. Joao Monteiro, analyst at
Valutrades, said in a note that the recent developments in the
standoff are seen as generally positive for stocks. Pro-Russia
separatists have handed over the black boxes from the downed
Malaysia Airlines plane to Malaysian authorities and have agreed to
send victims' bodies to the Netherlands.
Meanwhile, European Union foreign ministers are gathering in
Brussels on Tuesday to discuss further sanctions on Russia
following the incident.
U.S. stock markets closed lower on Monday, as investors remained
jittery amid escalating violence in the Gaza Strip and the
possibility of tougher sanctions on Russia.
In Tuesday's trade, European and Asian equity markets were
gaining. Oil futures (CLQ4) continued to rise, while metals prices
(GCQ4)were mostly lower. The dollar advanced against most
rivals.
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