Tuesday July 24th

24-07-2018

Dow set to rise 150 points as Google-parent Alphabet leads wave of strong earnings

U.S. stock index futures rose prior to Tuesday’s open, boosted by a wave of strong corporate earnings that was led by Google-parent company Alphabet. At around 8:30 a.m. ET, Dow Jones Industrial Average futures rose 140 points, indicating a gain of 150.71 points at the open. Nasdaq 100 and the S&P 500 futures also indicated a positive start to their respective trading sessions. Alphabet shares surged 4.5 percent in the premarket to lead tech shares higher after the company reported stronger-than-forecast quarterly results. Facebook and Amazon rose 2.2 percent and 1.4 percent, respectively. Netflix and Twitter gained 0.7 percent and 1 percent, respectively. Eli Lilly also reported better-than-expected earnings. The company said it plans to file an initial public offering for its Elanco Animal Health unit as well. Shares of Eli Lilly rose more than 3 percent before the bell. Biogen shares jumped more than 5.5 percent after reporting earnings and revenue that beat expectations. Dow component United Technologies posted stronger-than-expected earnings and raising its full-year profit guidance, but its stock fell 0.6 percent. Equities also got a boost after China said it would use fiscal action to support its economy. The news jolted stocks around the world. In Europe, the Stoxx 600 index rose nearly 1 percent while the Shanghai Composite jumped 1.5 percent. The possibility of further loosening in monetary conditions pushed the offshore yuan down to a 13-month low. The U.S. composite purchasing managers’ index (PMI) is also due out at 9:45 a.m. ET. Asian stocks advanced on Tuesday, with China outperforming regional markets, as investors kept an eye on bond yields and the falling Chinese yuan. Chinese equities extended their gains, with the Shanghai Composite jumping 1.62 percent to close at 2,905.94, notching a third straight session of gains. The smaller Shenzhen Composite rose 1.51 percent to 1,625.84 and the blue-chip CSI 300 index added 1.59 percent by the end of the day. Hong Kong's Hang Seng Index rose 1.41 percent by 3:40 p.m. HK/SIN as sharp gains in the materials, property and construction, and financials sectors lifted the index. Japan's Nikkei 225 advanced 0.51 percent, around 113.49 points, to close at 22,510.48, recovering slightly after the index closed down by more than 300 points on Monday. Over in South Korea, the Kospi reversed earlier declines, closing higher by 0.48 percent to 2,280.20 as markets examined recent corporate results. Oil prices steadied on Tuesday as rising tension between the United States and Iran highlighted risks to supply while escalating trade disputes raised the prospect of slower economic growth and perhaps weaker energy demand. Brent crude oil was down 6 cents at $73 a barrel by 9 a.m. ET (1300 GMT). U.S. light crude was up 12 cents at $68.01. Gold prices were steady on Tuesday as the dollar slipped, but struggled to stabilize after weeks of losses. Spot gold was flat at $1,225.01 an ounce while U.S. gold futures for August delivery were also steady at $1,225.70.