By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures retreated from
session highs after the European Central Bank played down a news
story about its plans to embark upon a bond-buying stimulus,
plan.
Earlier, a news report suggested the ECB is considering buying
corporate bonds on the secondary markets as it attempts to fight
deflationary pressures and revitalize the economy.
Upbeat results from Apple Inc. on Monday after the market close
were helping futures in early trade.
Extending earlier gains, futures for the Nasdaq-100 index (NDZ4)
rose 31.25, or 0.8%, to 3,898. Those for the S&P 500 index
(SPZ4) rose 9.7 points, or 0.5%, to 1,909.60, while Dow industrials
futures (DJZ4) rose 60 points, or 0.4%, to 16,392.
Shares of Apple Inc. (AAPL) rose 2% in thin premarket trading,
after the company reported a 13% rise in profit, boosted by strong
demand for its new, bigger-screen iPhones and blowing out Wall
Street estimates. Morgan Stanley lifted its price target on Apple
to $115 from $110, and analysts at the investment bank said strong
iPhone demand and gross margin expansion will help drive upside for
shares. Also read: How you could have seen Apple's beat coming
The Nasdaq Composite(RIXF) had a strong session on Monday even
before Apple reported, gaining 1.4% and bettering the 0.9% gain for
the S&P 500 index (SPX).
ECB cheer, home sales ahead: Along with stock futures, the euro
(EURUSD) fell and European stocks rallied on a Reuters report that
the ECB may be investing in the corporate bond market. Such a move
would beef up its program aimed at driving growth in the
continent's struggling economy.
"ECB (reports) and corporate earnings are propelling stocks
higher, but I think here in the U.S., basically the market has hit
a bottom and earnings are paving the way for a year-end rally which
will take us to new records highs," said Peter Cardillo, chief
market economist at Rockwell Global Capital, who said he's looking
at the S&P 500 to hit 2,075 by year end.
Economists expect existing-home sales crept higher in September
to an annual rate of 5.10 million from 5.05 million in August. That
data is due at 10 a.m. Eastern. See the daily data preview
Shares of Travelers Cos. (TRV) and United Technologies (UTX)
both rose after results.
But McDonald's (MCD) shares fell 1.8% after the fast-food
restaurant chain's profit dropped by 30% in the third quarter.
Coca-Cola (KO) shares fell 4.7% after the company's revenue
slipped, while it lowered its long-term revenue target and warned
it did not expect to meet its earnings view.
Yahoo Inc. (YHOO) will report after the close.
Among other stocks that may see action, Chipotle Mexican Grill
Inc. (CMG) warned sales growth may slow, even as it reported
stronger-than-expected earnings late Monday. Follow more of the
day's big movers here.
China growth slows: The Nikkei 225 index fell 2% on Tuesday,
which gave the yen (USDJPY) a boost across the board, while China's
Shanghai Composite Index fell 0.7% after data showed China's
economy grew in the third quarter at the slowest pace in five
years. Europe stocks soared on those ECB reports. and a round of
solid earnings.
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