Tuesday April 24th

24-04-2018

Dow set to jump more than 100 points after strong earnings

U.S. stock index futures pointed to a strong open on Tuesday as major biggest companies reported better-than-forecast quarterly results. Around 7:25 a.m. ET, Dow Jones industrial average futures rose 137 points, indicating a higher open of 134.41 points. Nasdaq 100 and the S&P 500 futures also indicated a positive start to Tuesday's session for their respective markets. Earlier on Tuesday, Eli Lilly, United Technologies, Verizon, Caterpillar and Coca-Cola reported quarterly earnings and revenue that beat Wall Street estimates. Google-parent Alphabet also topped expectations, according to results posted Monday after the bell. The moves in premarket trade came as major markets overseas traded higher, lifted by news coming out of the bond market. On Monday, the 10-year Treasury note flirted with the 3 percent mark, its highest level since January 2014. It has since come off its highs. In economic data, the Philadelphia Fed's non-manufacturing business outlook survey is scheduled to be released at 8:30 a.m. ET, followed by S&P/Case-Shiller house price index and the FHFA house price index at 9 a.m. ET. At 10 a.m. ET, new home sales, consumer confidence and the Richmond Fed Survey of Manufacturing Activity are all scheduled to be published. In geopolitics, French President Emmanuel Macron is due to meet President Donald Trump as he continues his state visit to the U.S. While security, trade and strengthening cooperative ties are likely to be up for discussion, a key topic of importance to investors is the future of the Iran nuclear deal. The meeting comes as Iranian President Hassan Rouhani said in a speech Tuesday on state television that if "anyone betrays the deal, they should know that they would face severe consequences," Reuters reported. Asia markets traded mixed on Tuesday. Japan's Nikkei 225 gained 190.08 points, or 0.86 percent, to 22,278.12 while the Topix index rose 18.96 points, or 1.08 percent, to 1,769.75. Across the Korean Strait, the Kospi fell 9.97 points, or 0.4 percent, to 2,464.14. In Hong Kong, the Hang Seng index rose 407.16 points, or 1.35 percent, to 30,661.56 while Taiwan's Taiex fell 117.63 points, or 1.1 percent, to 10,579.5. Chinese mainland shares closed higher; the Shanghai composite was up 60.58 points, or 1.97 percent, at 3,128.60 and the Shenzhen composite gained 40.20 points, or 2.27 percent, to 1,804.40. Brent crude rose for sixth day on Tuesday, passing $75 a barrel, on expectations that supplies will tighten because fuel is rising at the same time the United States may impose sanctions against Iran and OPEC-led output cuts remain in place. Brent crude oil futures climbed to as high as $75.20 a barrel in early trading on Tuesday, the highest since Nov. 27, 2014. Brent was still at $75 a barrel at 0311 GMT up 29 cents, or 0.4 percent, from its last close. Brent's six-day rising streak is the most since a similar string of gains in December and it is up by more than 20 percent from its 2018 low in February. U.S. West Texas Intermediate (WTI) crude futures were at $68.98 a barrel, up 34 cents, or 0.5 percent from their last settlement. On Thursday, WTI rose to as high as $69.56, the most since Nov. 28, 2014. Gold steadied after three days of losses on Tuesday as the dollar stabilized off an earlier three-month peak and a rise in U.S. Treasury yields stalled, with lower prices tempting some buyers back to the market. Gold has slid nearly 2 percent in the last three trading sessions as a rally in U.S. yields towards the 3 percent mark pushed the dollar index to its highest since mid-January, making the metal more attractive to price-sensitive buyers. It also suffers from rising yields in its own right, as these lift the opportunity cost of holding non-interest bearing assets like bullion. Spot gold was up 0.1 percent at $1,325.96 an ounce, while U.S. gold futures for June delivery were up $3.70 an ounce at $1,327.70.