By Sara Sjolin and Anora M. Gaudiano, MarketWatch
Dollar index rises for 4th straight session
Stocks on Wall Street looked ready to relax their grip on record
levels at the open Tuesday, as traders focused on the next wave of
key earnings, including results from banking majors Morgan Stanley
and Goldman Sachs.
What are futures doing?
Futures for the Dow Jones Industrial Average rose 13 points, or
0.1%, to 22,911, while S&P 500 index futures slipped 0.70 point
to 2,555.5. Nasdaq-100 futures were down 4 point at 6,116.
On Monday, the three major benchmarks all scored record closing
highs
(http://www.marketwatch.com/story/dow-poised-for-fresh-high-in-muted-trading-as-investors-brace-for-week-of-earnings-2017-10-16),
with the Dow rising 0.4%, the S&P 500 ending 0.2% higher and
the Nasdaq Composite Index closing with a 0.3% gain.
What's driving the markets?
It's all about financial updates on Tuesday, with the
third-quarter earnings season continuing at full speed through this
session.
Johnson & Johnson (JNJ) rose 2% and UnitedHealth Group
Inc.(UNH) climbed 1.6% ahead of the bell after both beat earnings
forecasts.
Morgan Stanley(MS) shares were up 1.5% after the Wall Street
bank reported earnings that easily beat forecasts
(http://www.marketwatch.com/story/morgan-stanleys-earnings-top-estimates-2017-10-17)
as its wealth-management business continued to make reliable
profits.
Goldman Sachs Group Inc.(GS) also beat forecasts, sending shares
more than 1% higher
(http://www.marketwatch.com/story/goldman-sachs-stock-jumps-as-earnings-crush-estimates-2017-10-17).
See:Third-quarter earnings seen as 'an easy beat,' may bring
more market records
(http://www.marketwatch.com/story/third-quarter-earnings-seen-as-an-easy-beat-could-set-up-more-stock-market-records-2017-10-09)
And after the market closes, International Business Machines
Corp.(IBM) is slated to report.
The dollar got a boost from media reports out late Monday
(https://www.bloomberg.com/news/articles/2017-10-16/taylor-is-said-to-impress-trump-for-fed-chairman-as-warsh-slips)
saying that Stanford University's John Taylor, the economist behind
the famous "Taylor Rule," made a favorable impression on President
Donald Trump last week.
Taylor is considered one of the more hawkish candidates in the
running to become the next Federal Reserve chairman, and his
"Taylor Rule" implies that interest rates should be a lot higher
than they are now.
Read:Is the Fed chair race more wide open than portrayed?
(http://www.marketwatch.com/story/trump-looking-at-a-lot-of-people-in-search-for-next-fed-chief-mnuchin-2017-10-13)
The ICE Dollar Index was up 0.3% at 93.545 in Tuesday's
trade.
What do strategists say?
After the records logged on Monday, Hussein Sayed, chief market
strategist at FXTM, questioned how much upside remains.
"It looks to me like speculation and greed are driving the
current bull market, which could be an indication of the latest
stages of an uptrending market. However, it is not a wise decision
to sell uptrend markets; speculation might continue to drive stocks
higher, especially if earnings surprise to the upside," he said in
a note.
Which economic data are due?
The import price index for September is slated for release at
8:30 a.m. Eastern Time.
At 9:15 a.m. Eastern, industrial production figures for
September are forecast to show a rise of 0.3%. A report on capacity
utilization for the same month is due at the same time, followed by
a home builders' index for October at 10 a.m. Eastern.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Which stocks are in focus?
Shares of Netflix Inc.(NFLX) rose 0.8% ahead of the bell after
the streaming service late Monday reported stronger-than-forecast
subscriber growth
(http://blogs.marketwatch.com/thetell/2017/10/16/netflix-earnings-to-show-user-growth-ahead-of-subscription-price-increases-live-blog/)and
revenue for the third quarter.
First Take:Netflix plans huge movie push as it faces post-Disney
reality
(http://www.marketwatch.com/story/netflix-plans-huge-movie-push-as-it-faces-post-disney-reality-2017-10-16)
Also read:Netflix aims for all-time high as analysts see high
double-digit upside for shares after earnings
(http://www.marketwatch.com/story/netflix-aims-for-all-time-high-as-analysts-see-high-double-digit-upside-for-shares-after-earnings-2017-10-17)
U.S.-listed shares of Credit Suisse Group AG (CSGN.EB) rose 0.6%
after Swiss activist investor RBR Capital Advisors AG bought a
stake in the bank
(http://www.marketwatch.com/story/activist-rbr-capital-buys-stake-in-credit-suisse-2017-10-17)
and reportedly is seeking to split it up
(https://www.fnlondon.com/articles/credit-suisse-facing-break-up-calls-from-activist-investor-20171017?mod=mktw).
TransEnterix Inc. (TRXC) jumped 10% in premarket trade, on track
to add to a 93% rally from Monday. That move came after the medical
device company received regulatory clearance to market its robotic
surgery device
(http://www.marketwatch.com/story/transenterix-shares-soar-on-fda-clearance-of-robotic-surgery-device-2017-10-13).
Boeing Co.(BA) shares were down 1.7% after rival aircraft maker
Airbus (AIR.FR) took a 50.01% stake in Bombardier Inc.'s CSeries
jets
(http://www.marketwatch.com/story/bombardier-may-partner-with-airbus-on-cseries-jetliners-2017-10-16).
What are other assets doing?
Asian stocks closed mostly higher
(http://www.marketwatch.com/story/asian-market-rally-shows-signs-of-slowing-2017-10-16),
but with Chinese stocks ending lower ahead of the Communist Party's
congress later in the week. In Europe, indexes were mixed.
Read:5 reasons why investors need to watch China's National
Party Congress
(http://www.marketwatch.com/story/5-reasons-why-investors-need-to-watch-chinas-national-party-congress-2017-10-13)
Metals slumped, with gold 0.9% lower. Crude oil rose 0.4%, after
Iraqi forces took control of oil fields in Kirkuk.
(END) Dow Jones Newswires
October 17, 2017 08:25 ET (12:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.