By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures rose Tuesday,
following better-than-expected quarterly results from drug makers
including Merck & Co.
Reaction to a fall in home prices on a seasonally adjusted bases
was muted. Investors are next set to assess confidence among U.S.
consumers.
Futures for the Dow Jones Industrial Average (DJU4) climbed 38
points to 16,954, while those for the S&P 500 index (SPU4)
picked up 3 points at 1,975.9. The Nasdaq 100 index (NDU4) moved up
6.5 points to 3,966.5. (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.
U.S. house prices rose in May, according to the Case-Shiller
20-city composite index released Tuesday, with every city showing
gains.
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 morning.
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 0.5%
after the pharmaceutical company's second-quarter results came in
ahead of Wall Street's targets.
Wynn Resorts Ltd. (WYNN) shares dropped 4.2% premarket, after
the earnings per share beat analysts' expectations, but revenue
fell short of them.
Aetna (AET) gained nearly 5%, but reversed gains and was 1.9%
lower premarket even as 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 2.9%
in premarket, after missing forecasts and lowering its
guidance.
Stock in Herbalife Ltd. (HLF) fell 12% 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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