The Nasdaq Composite Index was on track to push further into
record territory Friday, boosted by strong earnings from Google
Inc.
E-mini Nasdaq-100 futures rose 18 points, or 0.4%, to 4616.
Shares of Google rallied 13% in premarket trade after the world's
largest Internet-search provider posted quarterly results that
topped analysts' expectations.
S&P 500 futures added one point to 2118. E-mini Dow futures
slipped eight points to 18012. Changes in stock futures don't
always accurately predict moves after the opening bell.
Gains in U.S. stocks on Thursday lifted the Nasdaq Composite to
a record. The Nasdaq advanced 1.3% to 5163.18, its first closing
high since June 23. The Dow Jones Industrial Average rose 0.4% to
18120.25 and the S&P 500 added 0.8% to 2124.29.
U.S. stocks have advanced this month, with gains driven in part
by hopes that Greece and its creditors would reach a bailout deal
and avert the country's exit from the eurozone. In July, the Dow
has advanced 2.8% and the S&P 500 has rallied 3%, through
Thursday's close.
"U.S. equities were held captive to those macroeconomic
uncertainties...which had very little to do with the news coming
out of the U.S.," said Mark Luschini, chief investment strategist
for Janney Montgomery Scott.
Now, "front and center is earnings season and so far the news
has been better than expected," he said. The easing of Greece
concerns and upbeat U.S. earnings are helping boost U.S. stocks, he
added.
Including results from 59 companies in the S&P 500, earnings
are on track to slip 3.6% in the second quarter, according to
FactSet. Ahead of the reporting season, analysts had expected
earnings to decline 4.5%.
On Friday, General Electric Co. reported better-than-expected
revenue and adjusted profit in its second quarter, as earnings in
its core industrials business grew. Shares rose 1.7% in premarket
trading.
Honeywell International Inc. said profit in its June quarter
rose more than expected, as lower costs outweighed a revenue
decline. Shares rose 2.4%.
European stocks were little changed. France's CAC-40 rose 0.2%
while Germany's DAX slipped 0.2%. The Stoxx Europe 600 was little
changed, pausing after a seven-day rally. Investors continued to
keep tabs on developments in Greece's financial situation, but the
risk of a Greek exit from the eurozone has diminished. The
International Monetary Fund said Friday it would participate in a
Greek bailout plan if it includes debt restructuring and bold
government reforms.
Investors will receive several updates on the U.S. economy
Friday. Housing starts are forecast to rise 7.1% in June to an
annual pace of 1.11 million, according to economists surveyed by
The Wall Street Journal. Separately, the consumer-price index is
expected to rise 0.3% in June.
In commodity markets, crude-oil prices fell 0.3% to $50.74 a
barrel. Gold futures lost 0.1% $11.43.10 an ounce.
The yield on the 10-year Treasury note inched down to 2.346%
from 2.352% on Thursday. Yields fall as prices rise.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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