By Sara Sjolin, MarketWatch
Chinese stimulus continues to buoy markets
U.S. stock-index futures pointed to a higher open for Wall
Street Tuesday, with investors zooming in on earnings from
prominent companies, including Dow components DuPont, United
Technologies and Verizon.
A rally in Asia also helped beef up U.S. stocks ahead of the
open, bolstered continued optimism over China's move on Sunday to
stimulate its economy by cutting the reserve ratio for banks
(http://www.marketwatch.com/story/china-cuts-banks-reserve-ratio-2015-04-19-94854558).
Futures for the Dow Jones Industrial Average (YMM5) gained 69
points, or 0.4%, to 18,012, while S&P 500 index futures (ESM5)
added 8.6 points, or 0.4%, to 2,099.60. Nasdaq 100 futures (NQM5)
climbed 20.25 points, or 0.5%, to 4,428.25.
"It looks as though we will get another day of lackluster
fundamentals, however the [reserve requirement ratio] cut by the
[People's Bank of China] is still pushing global equities sharply
higher," said Nour Al-Hammoury, chief market strategist at ADS
Securities, in a note. "The S&P 500 and the Dow Jones futures
are both up as they still price in the news from China."
The benchmarks also put in solid performances on Monday
(http://www.marketwatch.com/storyno-meta-for-guid) on the back of
better-than-expected earnings and the stimulus news from China.
Earnings: More earnings on Tuesday could provide another boost
to the markets, with a hefty lineup of results ahead of the
bell.
DuPont & Co.(DD) reported a drop in first-quarter earnings,
partly due to the impact from a stronger dollar
(http://www.marketwatch.com/story/dupont-forecasts-larger-forex-hit-as-sales-slip-2015-04-21).
It also said that the strengthening greenback will dent its
earnings for the full year more than it initially forecast in
January. Shares inched higher ahead of the bell, however.
United Technologies Corp.(UTX) climbed 1% after the company
reported a 20% rise in first-quarter profit per share.
Harley-Davidson Inc.(HOG) shares slumped 7% after it cut
shipment outlook for the year.
Verizon Communications Inc.(VZ) easily topped Wall Street
forecasts
(http://www.marketwatch.com/story/verizons-earnings-top-estimates-2015-04-21)
with earnings of $4.34 billion, or $1.02 a share.
Under Armour Inc.(UA) shares slumped 3% as sales fell below
expectations due to currency volatility and cost related to
acquisitions.
Baker Hughes Inc.(BHI) is expected to report first-quarter
earnings of 45 cents a share.
After the bell, Yahoo Inc.(YHOO) is projected to report
first-quarter earnings of 18 cents a share.
There were no major data releases or Federal Reserve speakers
scheduled for Tuesday. The Fed is in its "blackout" period leading
up to its policy meeting on April 28-29.
Movers and shakers: Shares of International Business Machines
Corp.(IBM) climbed 0.2% after reporting first-quarter earnings late
Monday.
Other markets: Japanese and Chinese stocks closed firmly in
positive territory, and Europe followed suit with solid gains in
morning trade.
Greece's Athex Composite Index , however, bucked the positive
trend and slumped 3.3% amid fears the country is running out of
cash. The European Central Bank is now looking at measures to rein
in support for Greek banks
(http://www.marketwatch.com/story/ecb-looking-at-reining-in-support-for-greek-banks-reports-2015-04-21)
under its emergency liquidity assistance (ELA), according to a
Bloomberg report on Tuesday.
See: Investors may be ignoring potential "collateral damage"
from Greece
(http://www.marketwatch.com/story/investors-may-be-ignoring-potential-collateral-damage-from-greece-2015-04-20).
Oil (CLK5) slipped 0.2%
(http://www.marketwatch.com/storyno-meta-for-guid) with investors
closely tracking oil-production levels in the U.S. and the
Organization of the Petroleum Exporting Countries. Metals were
mostly rising, while the ICE dollar index (DXY) was little changed.
Gold futures (GCK5) inched higher, above the $1,200 an ounce
level.
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