U.S. stock futures were mixed Thursday as investors considered a
flood of corporate earnings reports.
S&P 500 futures added one point, or 0.1%, to 2109. E-mini
Dow futures slipped 15 points, or 0.1%, to 17770. E-mini Nasdaq-100
futures gained seven points, or 0.2%, to 4624. Changes in stock
futures don't always accurately predict moves after the opening
bell.
Results from General Motors Co. and Caterpillar Inc. sparked big
moves ahead of the opening bell. And while several companies still
have to post results, investors say the early reports have given
them confidence that companies can surpass the low expectations for
earnings. Including results from 125 companies in the S&P 500,
earnings are on track to fall 2.7%, according to FactSet. That's
better than the 4.5% decline forecast by analysts.
"With the overall macro situation a bit more calm in Greece and
China, the market is digesting what's been better-than-expected
corporate earnings for the most part in the U.S.," said Steven
Rees, global head of equity strategy at J.P. Morgan Private
Bank.
General Motors Co. said second-quarter profit rose sharply as
U.S. customers continued to flock to profitable SUVs and crossover
vehicles. Shares rose 6.7% premarket.
Caterpillar Inc. reported a steeper-than-expected 13% drop in
sales and cut its sales outlook for the year by $1 billion. Shares
fell 3% premarket.
Investors will get a reading on the labor market Thursday.
Jobless claims in the most recent week are expected to slip to
278,000 from 281,000 in the previous week, according to economists
surveyed by The Wall Street Journal.
European stocks were mixed Thursday. France's CAC-40 rose 0.1%,
while Germany's DAX lost 0.1%. An early-morning vote in Greece's
Parliament approved a second batch of economic overhauls demanded
by creditors, paving the way for bailout talks.
The slump in commodities prices showed signs of abating. Gold
futures added 0.8% to $1100.30 an ounce. Crude-oil futures rose
0.2% to $49.28 a barrel.
In other earnings news, Comcast Corp. said its second-quarter
profit rose 7.3%, boosted by the movie "Jurassic World" and revenue
growth at its broadband and business services divisions. Shares
were down 0.1% premarket.
Qualcomm Corp. said late Wednesday it would cut spending by $1.4
billion and consider restructuring its operations, as the company
disclosed a 47% drop in quarterly profit. Shares slipped 2.4%
premarket.
Also after the bell on Wednesday, SanDisk Corp. reported steep
drops in profit and revenue for its second quarter. Results came in
above Wall Street expectations, boosting shares 13% in premarket
trading.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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