Tuesday October 22nd

22-10-2019

Stocks set for flat open amid earnings deluge

U.S. stock index futures pointed to a flat open on Tuesday as investors pored through a slew of key earnings from companies such as United Technologies, Procter & Gamble and McDonald’s. Around 8:12 a.m. ET, Dow Jones Industrial Average futures indicated a loss of 12 points at the open. S&P 500 and Nasdaq 100 were both little changed. United Technologies shares rose more than 1.5% after the company posted earnings that topped analyst expectations. Better-than-expected revenues from the company’s Otis, Pratt & Whitney and Collins Aerospace divisions helped drive the beat. Procter & Gamble climbed 4.2% in the premarket after its results topped expectations. The company’s numbers were driven by Procter’s beauty, health care and fabric and home care lines. However, those results were dampened by a 3% drop in McDonald’s shares. The fast-food giant posted earnings and revenue for the previous quarter that missed analyst expectations. The company’s U.S. same-store sales, a key metric for franchises, grew by 4.8%. That’s below a StreetAccount estimate of 5.1%. So far, more than 18% of S&P 500 companies have reported quarterly numbers. Of those companies, nearly 80% have beaten analyst earnings expectations. Texas Instruments, Chipotle Mexican Grill and Snap are poised to report their latest quarterly figures after market close. Investors also kept an eye on global trade after China’s vice foreign minister said that Beijing and Washington had achieved some progress in their trade talks. His comments come less than 24 hours after President Donald Trump sounded optimistic about the prospect of a trade agreement by the middle of next month.  On the data front, the Philadelphia Fed non-manufacturing index for October will be released at around 8:30 a.m. ET. Existing home sales for September and the Richmond Fed survey for October will follow slightly later in the session. Asia Pacific markets rose on Tuesday, likely fueled by an improvement in investor sentiment around ongoing negotiations between the United States and China. In South Korea, the Kospi index rose 1.16% to 2,088.86 as major chipmakers gained. Samsung shares were up 1.79% and SK Hynix added 2.06%. Hong Kong’s Hang Seng Index was up 0.28% in late-afternoon trade. Chinese mainland shares mostly advanced: The Shanghai composite was up 0.5% at 2,954.38, the Shenzhen composite added 1.01% to 1,631.21 and the Shenzhen component gained 0.93% to 9,642.09. Japanese markets are closed for a public holiday. Oil prices rose on Tuesday after China signaled progress in trade talks with the United States, but gains were capped by bearish forecasts of a buildup in U.S. crude stockpiles. Brent crude oil was up 24 cents at $59.20 a barrel, while U.S. West Texas Intermediate crude was 26 cents higher at $53.57 per barrel. Gold prices inched higher on Tuesday ahead of a crucial vote by British lawmakers on the Brexit withdrawal agreement, although prospects for a Sino-U.S. trade deal limited the bullion’s gains. Spot gold was up 0.3% at $1,487.98 per ounce. U.S. gold futures rose 0.2% to $1,491.10.