Stock Futures Rise Ahead of Fed as Apple Turns Positive
NEW YORK (TheStreet) -- Stock futures were moving higher Tuesday as investors await the outcome of the Federal Reserve's two-day policy meeting that begins Tuesday and Apple (AAPL) shares were turning positive amid differing views about the impact of future gross margins which may be contracting.
Looking to Washington, the Fed is not expected to announce a pullback of its stimulus program given the patchy economic data issued by government agencies over the last few weeks exacerbated by the Republican-led shutdown in Washington.
Futures for the S&P 500 were rising 2.5 points, or 5.04 points above fair value, to 1,761.5, while futures for the Dow Jones Industrial Average up 25 points, or 41.07 points above fair value, to 15,543. Futures for the Nasdaq were up 4 points, or 12.82 points above fair value, to 3,387.3.
Apple was up 1.5% to $537.90. The Cupertino, Calif.-based tech behemoth reported net income of $8.26 per share on $37.5 billion in revenue on Monday as iPhone sales topped 33.8 million during the quarter compared to 26.9 million in the same period a year earlier. The company also sold 14.1 million iPads and 4.6 million Macs during the quarter. Earlier they'd been falling in afterhours trading amid the worries about its future gross margins.
Nokia (NOK) was surging more than 7% to $7.23 after the Finnish company reported an operating profit of EUR 118 million ($162 million) amid strong performances by Nokia Solutions and Networks (NSN). The company also expressed optimism about the sale of its devices unit to Microsoft MSFT. "We became the full owner of NSN and we agreed on the sale of our handset operations to Microsoft, transactions which we believe will radically sreshape the future of Nokia for the better."
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