Tuesday July 16th

16-07-2019

US stock futures rise after Goldman Sachs and Johnson & Johnson beat on earnings

U.S. stock index futures rose Tuesday as the corporate earnings season kicked into full gear as companies like Goldman Sachs and Johnson & Johnson released their quarterly results. Dow Jones Industrial Average futures indicated a gain of 32 points at the open while S&P 500 futures also pointed to a small gain. Nasdaq 100 futures were up slightly. Goldman Sachs reported earnings per share and revenue that topped analyst expectations amid a strong performance from the company’s investment banking and trading divisions. Goldman shares rose 1.1%. Johnson & Johnson, meanwhile, saw a 42% profit surge in the previous quarter, fueled by growth in its prescription drugs business. The Dow component traded 0.5% higher before the bell. J.P. Morgan Chase also reported on Tuesday better-than-expected second-quarter earnings and revenue on Tuesday. The bank said it got a tax boost from the resolution of “certain” audits. The company’s stock slipped more than 1% in the premarket, however. So far, just over 5% of S&P 500 companies have reported calendar second-quarter earnings, according to FactSet. Of those companies, more than 85% have posted better-than-expected earnings. Investors will welcome the strong start to the earnings season, but the outlook for corporate profits remains bleak.  Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter, according to FactSet data. United Airlines and CSX are among the companies due to report after the bell Tuesday. Morgan Stanley, BlackRock, and American Express are scheduled to report earnings later this week. Stocks rose to notch a fresh record close on Monday, but gains were tepid as Wall Street monitors the start of earnings season. The record highs represent a modest continuation of a Wall Street rally triggered last week after Federal Reserve Chair Jerome Powell indicated during congressional testimony that an interest rate cut may be on the horizon. Stocks in Asia were mixed on Tuesday, as minutes from a recent meeting by the Reserve Bank of Australia showed the central bank’s willingness to move on monetary policy if necessary. In China, the Shanghai composite slipped 0.16% to close at 2,937.62, while the Shenzhen component shed 0.28% to finish its trading day at 9,283.41. The Shenzhen composite closed just below the flatline at 1,571.81. Hong Kong’s Hang Seng index advanced about 0.1%, as of its final hour of trading. The Nikkei 225 in Japan, which returned to trade after a holiday on Monday, slipped 0.69% to end its trading day at 21,535.25. The Topix index also shed 0.48% to close at 1,568.74. South Korea’s Kospi ended its trading day 0.45% higher at 2,091.87. Oil prices steadied on Tuesday as a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil countered tensions in the Middle East. Uncertainty about China’s economic prospects also pressured prices after data on Monday showed that growth in the country slowed to 6.2% from a year earlier, the weakest pace in at least 27 years. Brent crude futures were down 16 cents at $66.32 a barrel, after hitting a session high of $66.84. West Texas Intermediate crude futures fell by 8 cents to $59.50 a barrel. The U.S. benchmark hit a session high of $59.87 earlier in the day. Gold prices slipped on Tuesday as investors awaited retail sales data from the United States later in the session for cues on the health of the world’s largest economy. Spot gold inched up 0.1% to $1,414.92 per ounce. U.S. gold futures rose 0.2% to $1,416.60.