By Anora Mahmudova and Carla Mozee, MarketWatch
Morgan Stanley disappoints; Delta and Halliburton top
estimates
NEW YORK (MarketWatch) -- U.S. stock futures climbed on Tuesday,
in part driven by hopes that European Central Bank will announce
its bond-buying program this week.
Investors took a a flurry of mixed earnings results in stride,
including reports from Morgan Stanley, Johnson & Johnson and
Halliburton.
U.S. markets were closed on Monday in observance of the Martin
Luther King Jr. holiday, and the only economic data on tap Tuesday
will gauge the mood in the key home building industry.
Futures for the Dow Jones Industrial Average (DJH5) jumped 87
points, or 0.5%, to 17,519, and those for the S&P 500 index
(SPH5) climbed 11.8 points, or 0.6%, to 2,024.7. Nasdaq-100 futures
(NDH5) were up 30 points, or 0.7%, at 4,164.
"With investors crying out for more stimulus from China and the
eurozone to keep the global economic train on track, the increasing
likelihood they will get their wish sooner rather than later is
giving equities a short-term boost," wrote Mike McCudden, head of
derivatives at stockbroker Interactive Investor, in a Tuesday
note.
Overnight, China said gross domestic product expanded 7.4% last
year, beating market expectations of 7.2%. Still, that marked the
slowest rate of growth since 1990 for the world's second-largest
economy. Meanwhile, European equities were trading around
seven-year highs ahead of an expected unleashing of a sovereign
bond-buying plan by the European Central Bank when policy makers
meet on Thursday.
On Wall Street's agenda Tuesday were Morgan Stanley's quarterly
results (MS). The bank's shares fell 3% ahead of the bell after
reporting fourth-quarter results missed analyst expectations. Net
income was 47 cents a share and adjusted per-share earnings came in
at 40 cents. Revenue totaled $7.8 billion.
Delta Air Lines Inc. (DAL) beat estimates,reporting
fourth-quarter revenue of $8.24 billion, up 4.6%. Shares climbed
ahead of the market open.
Halliburton Co. (HAL) reported better-than-expected results, but
warned that 2015 could be a challenging year for the oil-field
servicing company, which is planning to acquire Baker Hughes Inc.
(BHI) Shares rose premarket.
Consumer products heavyweight Johnson & Johnson (JNJ) beat
profit expectations, but sales fell shy of estimates. Shares fell
1% ahead of the bell.
At 10 a.m., the National Association of Home Builders is due to
release its gauge of confidence among home builders for this
month.
Also at 10 a.m. Federal Reserve Governor Jerome Powell, a member
of the Federal Open Market Committee, is slated to speak at the
Brookings Institution on improving financial market conduct and
structure.
U.S. stocks on Friday ended a turbulent session higher, with the
S&P 500 (SPX), the Dow Jones Industrial Average (DJI) and the
Nasdaq Composite Index (RIXF) each gaining at least 1%. Stocks had
been aided by a rally in oil prices and calmer currency markets,
but the indexes still marked a fourth consecutive weekly loss.
Stocks to watch:SAP SE (SAP) dropped its midterm profit margin
forecast and reported a 1% decline in fourth-quarter profit, hurt
by its shift to cloud-based products.
Google Inc. (GOOG) is close to investing about $1 billion in
Space Exploration Technology Corp. to support its effort to deliver
Internet access via satellites, according to The Wall Street
Journal. Space X is backed by Tesla Motors Inc. (TSLA) chief Elon
Musk.
Twitter Inc.(TWTR) in a blog post Tuesday said it's buying
India-based mobile-marketing company ZipDial for an undisclosed
sum.
DreamWorks Animation SKG Inc.(DWA) last week started letting
workers go, The Wall Street Journal reported.
Other markets: Chinese stocks rose nearly 2% after Monday's
selloff and Japan's Nikkei Average closed 2.1% higher, its
strongest percentage gain in a month.
Gold futures (GCG5) were up more than 1%. Oil futures (CLH5)
fell 3%, trading below $48 a barrel.
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