By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Netflix results due after the close
U.S. stock-index futures pointed to a higher open on Monday, as
the latest round of corporate earnings continued to support the
thesis that companies were growing.
Need to know:This jumpy stock market may have found a
bottom--here's why
(http://www.marketwatch.com/story/this-jumpy-stock-market-may-have-found-a-bottom-heres-why-2018-04-13)
What are the main benchmarks doing?
Dow Jones Industrial Average futures rose 177 points, or 0.7%,
to 24,513, while S&P 500 futures added 19.7 points, or 0.7%, to
reach 2,677. Nasdaq-100 futures gained 46 points, or 0.6%, to hit
6,686.75.
On Friday
(http://www.marketwatch.com/story/us-stock-futures-slip-as-global-tensions-persist-with-big-bank-earnings-ahead-2018-04-13),
the Dow industrials fell 122.91 points, or 0.5%, to end at
24,360.14. The S&P 500 index declined 0.3%, and the Nasdaq
Composite Index lost 0.5%.
For the week, the Dow booked a gain of 1.8%, while the S&P
rose 2% and the Nasdaq produced a weekly gain of 2.8%.
What's driving markets
Geopolitical issues remain in focus after the U.S. joined with
France and Britain to launch missiles that destroyed much of
Syria's chemical-weapons capabilities on Saturday. The strikes left
much of President Bashar al-Assad's conventional military
facilities intact, which may ease fears of an escalation in
tensions with Russia, a backer of Syria's regime.
Corporate earnings are likely to be more important for
investors, however. A number of bellwether names, including Netflix
Inc. (NFLX) and General Electric Co. (GE), are scheduled to report
in the coming days, joining Bank of America, which reported early
Monday.
Read:Netflix earnings: Another 'beautiful quarter,' or are
subscriber expectations too high?
(http://www.marketwatch.com/story/netflix-earnings-another-beautiful-quarter-or-are-subscriber-expectations-too-high-2018-04-13)
Which stocks are in focus?
Bank of America Corp.(BAC) rose 0.7% in premarket after beating
profit and revenue expectations
(http://www.marketwatch.com/story/bank-of-america-tops-profit-revenue-expectations-2018-04-16).
The results follow JPMorgan Chase & Co. (JPM), Citigroup Inc.
(C) and Wells Fargo & Co. (WFC), all of which lost ground
Friday even after posting earnings that were either in-line or
better than expected. Some say that could be due to concerns that
earnings growth has peaked
(http://www.marketwatch.com/story/how-the-stock-market-reacts-to-earnings-will-be-telling-2018-04-14).
And:Tax cuts were supposed to juice the economy, but banks
aren't seeing it
(http://www.marketwatch.com/story/tax-cuts-were-supposed-to-juice-the-economy-but-banks-arent-seeing-it-2018-04-13)
U.S.-listed shares of WPP PLC(WPP.LN) fell nearly 5% in
premarket trading after news Chief Executive Officer Martin Sorrell
has resigned over a probe into an allegation of personal misconduct
(http://www.marketwatch.com/story/wpp-ceo-martin-sorrell-steps-down-2018-04-15).
Icahn Enterprises L.P.(IEP) rose 1.3% after announcing its
majority-owned Tropicana Entertainment Inc. has entered a deal to
sell its real estate to Gaming and Leisure Properties Inc. (GLPI)
for $1.85 billion. It will also merge its gaming and hotel business
into Eldorado Resorts Inc.(ERI). Shares of Eldorado jumped 6% in
premarket trading.
Alkermes PLC (ALKS) jumped 21% after the Food and Drug
Administration accepted the biopharmaceutical firm's new drug
application for its treatment for depression.
MoviePass majority owner Helios & Matheson Analytics
Inc.(HMNY) rallied 3.7% in premarket trading, extending a gain that
started after Verizon Communications Inc. (VZ)disclosed a large
equity stake in the company
(http://www.marketwatch.com/story/moviepass-owner-helios-mathesons-stock-jumps-again-after-verizon-discloses-large-stake-2018-04-16).
Navistar International Corp. (NAV) rose 6.7% before the bell
after Volkswagen AG's commercial-vehicles business said it is
considering increasing its stake
(http://www.marketwatch.com/story/navistar-shares-jump-as-vw-mulls-raising-stake-2018-04-16)
in the U.S. truck company to more than 17%.
NewLink Genetics Corp. (NLNK) tumbled 15% after the company said
it won't proceed as planned
(http://www.marketwatch.com/story/newlink-shares-fall-on-late-stage-trial-changes-2018-04-16)
with a late-stage trial of its indoximod drug for advanced
melanoma.
What are analysts saying?
-- "For now, investors appear at ease with the situation and as
long as no further escalation occurs, attention may now switch to
other matters such as first quarter earnings season," said Craig
Erlam, senior market analyst at OANDA, in a note to clients.
-- Michael O'Rourke, chief market strategist at JonesTrading,
said it is a little worrying that investor expectations are so high
running into earnings season, given financials drove much of
Friday's modest S&P 500 losses.
"As companies report earnings, those high expectations are
probably the greatest threat to share price performance going
forward. If shares continue to be sold off following a company's
good but not great earnings, it will be a negative omen for the
broad tape," said O'Rourke.
What is on the economic docket?
Sales at U.S. retailers rose 0.6% in March
(http://www.marketwatch.com/story/us-retail-sales-spring-back-06-in-march-after-three-straight-declines-2018-04-16)
to end a streak of three straight declines, the Commerce Department
reported Monday, underscoring the improved financial picture of
American households and the resiliency of an economic expansion
that could turn out to be the longest ever.
Read: Americans are spending again after lying low for a few
months
(http://www.marketwatch.com/story/americans-are-spending-again-after-lying-low-for-a-few-months-2018-04-14)
Atlanta Federal Reserve President Raphael Bostic will kick off a
busy week for Fed appearances on Monday as he's expected to speak
on the economy and rural market trends to the Shoals Chamber of
Commerce in Florence, Ala., at 12:15 p.m. Eastern Time.
Meanwhile, Minneapolis Fed President Neel Kashkari said he
expects the central bank will soon reach its 2% objective, making
it easier to push on with interest-rate hiking plans, in an
interview with The Wall Street Journal that was published Monday.
(http://www.marketwatch.com/story/feds-kashkari-says-fiscal-stimulus-supports-moving-ahead-with-interest-rate-tightening-2018-04-16)
What are other markets doing?
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)Asian
markets surrendered much of an early lead
(http://www.marketwatch.com/story/asian-markets-pull-back-lose-early-gains-2018-04-15),
led by falls for China and Hong Kong. European stocks edged lower.
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)U.S.-listed
VanEck Vectors Russia ETF (RSX) dropped 1.3% in premarket, tracking
a 0.4% drop in the Russia RTS index ahead of possible U.S.
sanctions. The ruble was rising against the dollar, which bought
61.83 rubles, down from Friday's 62.35.
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)Read:These
cheap European stocks yield up to 8.1%
(http://www.marketwatch.com/story/these-beaten-down-stocks-look-like-bargains-and-yield-up-to-81-2018-04-14)
Gold futures inched lower, while the ICE U.S. Dollar Index held
steady. Oil prices pulled back as Syria worries eased somewhat
(http://www.marketwatch.com/story/oil-prices-drop-after-last-weeks-big-gains-as-syria-risk-fatigue-sets-in-2018-04-16)
and investors cashed in on some of last week's big gains.
(END) Dow Jones Newswires
April 16, 2018 09:19 ET (13:19 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.