Tuesday April 23rd

23-04-2019

Dow futures rise on better-than-expected earnings

U.S. stock index futures pointed to a higher open for the 30-stock index on Tuesday as some of the major U.S. companies reported strong quarterly results. The Dow was headed for a 30-point gain at Tuesday’s open. S&P 500 and Nasdaq 100 futures pointed to a flat open. Dow members Coca-Cola and United Technologies reported better-than-expected quarterly earnings on Tuesday. Their shares rose 3.5% and 2.8%, respectively, in the premarket. Procter & Gamble also posted stronger-than-forecast earnings, but its stock traded down 0.1%. Twitter shares jumped nearly 8% on its stronger-than-expected results. The social media company said its monthly active users totaled 330 million, more than a FactSet estimate of 318 million. Texas Instruments, eBay and Stryker are set to release their latest quarterly results after market close. Wall Street also kept an eye on oil prices as they hit their highest level this year amid intensifying concern about global supplies. It comes after the U.S. announced a further clampdown on Iran’s oil exports. The world’s largest economy said Monday that from May 1, it would eliminate all waivers allowing eight economies to buy Iranian oil without facing U.S. sanctions. International benchmark Brent crude traded at $74.25 Tuesday morning, up around 0.3%, while U.S. West Texas Intermediate (WTI) stood at $65.94, almost 0.6% higher. On the data front, the latest Philadelphia Fed non-manufacturing survey and FHFA Housing Price Index for February will be published during early morning deals. New home sales for March and the Richmond Fed survey for April will both be released at around 10:00 a.m. ET. Shares in Asia were mixed on Tuesday as investors grappled with the recent spike in oil prices following an after the  U.S. announced that its sanctions waivers on Iran oil will end by early May. The Nikkei 225 in Japan recovered from an earlier slip to close 0.19% higher at 22,259.74. The Topix index also finished its trading day up 0.27% at 1,622.97. South Korea’s Kospi added 0.17% to close at 2,220.51. Mainland Chinese shares saw a second consecutive day of declines, with the Shanghai composite slipping 0.51% to approximately 3,198.59 and the Shenzhen component falling about 0.97% to around 10,124.66. The Shenzhen composite also declined 1.316% to roughly 1,728.86. The Hang Seng index declined about 0.2%, in the final hour of trading on Tuesday. Gold edged lower on Tuesday as strong equities provided a risk-conducive backdrop for investors, countering support from Washington’s move to end waivers on Iranian oil sanctions. Spot gold fell 0.1 percent to $1,273.18 per ounce as of 0750 GMT. U.S. gold futures shed 0.2 percent to $1,275 an ounce. “Gold is currently trying to find a short-term bottom around $1,274-1,275 an ounce level, especially as equity markets continue to rally,” said Margaret Yang, an analyst with CMC Markets in Singapore.