By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures rose Tuesday,
following better-than-expected quarterly results from drug makers
including Merck & Co.
Investors are next set to assess reports that may show some
slowing in U.S. housing prices and confidence among U.S.
consumers.
Futures for the Dow Jones Industrial Average (DJU4) climbed 30
points to 16,946, while those for the S&P 500 index (SPU4)
picked up 3 points at 1,976. The Nasdaq 100 index (NDU4) moved up 7
points to 3,967. (Read more in Need to Know for Tuesday: Why short
sellers are winners for 2014 so far
http://blogs.marketwatch.com/need-to-know/2014/07/29/why-short-sellers-are-winning-right-now-and-going-big-against-ackmans-deathblow/.).
A snapshot of consumer confidence from the Conference Board is
due at 10 a.m. Eastern. The reading is expected to fall to 85.0 in
July, after a jump in June to the index's highest level in six and
a half years. Confidence still remains well below pre-recession
levels.
On tap at 9 a.m. Eastern is the Case-Shiller home price index
for May, and that's likely to show the cost of buying a home has
tapered off after a significant runup last year.
Data released Monday showed pending U.S. homes sales fell 1.1%
in June, the first decline in four months. That report "confirmed
Fed Chair Yellen's remarks before the Senate Banking committee
earlier this month about the overall slowdown in the housing
sector," wrote Marshall Gittler, head of global FX strategy at
IronFX, on Tuesday.
Yellen will lead monetary policy makers in their two-day meeting
that begins Tuesday afternoon.
Ahead of the opening bell, shares of Merck & Co. (MRK) -- a
component of the Dow Jones Industrial Average (DJI) -- rose 1% in
premarket trade after the drug maker's adjusted earnings and sales
surpassed expectations.
Shares of fellow Dow component Pfizer Inc. (PFE) gained 1.3%
after the pharmaceutical company's second-quarter results came in
ahead of Wall Street's targets.
Aetna (AET) gained nearly 5% premarket after the health insurer
raised its 2014 operating earnings projection based on improvement
in second-quarter results from the year-earlier period.
Logistics company United Parcel Service Inc. (UPS) dropped 3% in
premarket, after missing forecasts and lowering its guidance.
Stock in Herbalife Ltd. (HLF) fell 11% ahead of the open,
extending losses from late Monday when the nutritional supplements
marketer posted quarterly results that missed Wall Street's
targets.
Investors will also keep watch for any update about further
sanctions that may be imposed against Russia by the European Union
related to its conflict with Ukraine.
After the regular session ends, Twitter Inc. (TWTR) is slated to
release second-quarter results.
In Asia, most major stock markets ended higher, with Japan's
Nikkei Average up 0.6%. In Europe, the U.K.'s FTSE 100 edged higher
on upbeat earnings reports.
Oil prices (CLU4) turned slightly lower, while gold (GCU4) rose
nearly $5. The U.S. dollar index (DXY), which measures the
greenback against a basket of six other currencies, rose to 81.061
from 81.025 on Monday.
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