Stock Market Today: Futures Rise Dictated by Earnings Outlooks
NEW YORK (TheStreet) -- U.S. stocks were marching higher Wednesday, looking to extend the prior session's gains as investors become more and more optimistic that second-quarter earnings reports will drive the major indices to record highs.
Dow Jones Industrial Average futures were up 31 points, or 18.46 points above fair value, to 17,064, while S&P 500 futures were rising 3.75 points, or 1.47 points above fair value, to 1,978.75 as the index edges closer to 2,000.Futures for the Nasdaq were ticking up 7.5 points, or 4.28 points above fair value, to 3,958.
U.S. stocks moved back into record-making territory on Tuesday as positive earnings overshadowed continued unease in Eastern Europe and the Middle East. Boosting the index, Chipotle (CMG), Comcast (CMCSA) and Verizon (VZ) gained following better-than-expected earnings reports.
S&P Capital IQ reported that S&P 500 second-quarter earnings growth is now expected to come in at 7% year over year, with earnings per share of $28.80. All 10 sectors are anticipated to have grown the second quarter.Meanwhile, a report from Yardeni Research said that S&P 500 forward earnings rose to a record high last week and have risen in 23 of the past 24 weeks. The S&P 400 has been up for 15 weeks and at a record high for the past 13 weeks. The S&P 600 has been at a record high for seven weeks after rising for nine consecutive weeks. Microsoft (MSFT) on Tuesday evening reported fiscal fourth-quarter earnings that beat Wall Street expectations. Apple's (AAPL) earnings in the quarter ended June 28 rose at the highest rate in nearly two years as the tech giant sold 35.2 million iPhones during the period. Wednesday's round of widely watched earnings reports will come from companies such as AT&T (T), Boeing (BA), Facebook (FB), and Delta Air Lines (DAL). AT&T is expected by Wall Street to post second-quarter earnings of 63 cents a share on revenue of $33.22 billion. Wall Street expects Delta Air Lines to report earnings of $1.03 a share for its second quarter ended June 30, on revenue of $10.65 billion. Aerospace giant Boeing is forecast to report second-quarter profit on Wednesday of $2.01 a share on revenue of $22.23 billion. Social networker Facebook, which has worked to shift its business to mobile, is expected by Wall Street on Wednesday to report second-quarter earnings of 32 cents a share on revenue of $2.81 billion. Potential market movers also include Herbalife (HLF). Activist investor Bill Ackman denounced weight loss and nutritional supplements company Herbalife as a pyramid scheme in a three-hour presentation on Tuesday, but Wall Street shrugged off his criticism and sent the company's stock soaring more than 25% to $67.77. -- By Andrea Tse in New York
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV