US stocks may break losing run, with McDonald’s, Caterpillar in focus
New York (Oct 22) Wall Street was set to rise for the first time in three days on Thursday, with another raft of high profile earnings likely to steer the trading direction, including updates from McDonald’s Corp., Eli Lilly & Co. and Caterpillar Inc.
Investors were also waiting for fresh U.S. housing data and jobless claims figures as well as the latest policy announcement from the European Central Bank.
Futures for the Dow Jones Industrial Average YMZ5, +0.18% added 52 points, or 0.3%, to 17,108, while those for the S&P 500 index ESZ5, +0.36% gained 7.75 points, or 0.4%, to 2,016.25. Futures for the Nasdaq 100 index NQZ5, +0.45% climbed 19 points, or 0.4%, to 4,418.25.
“U.S. futures appear to be benefiting from the correction we’re seeing in commodity prices today. We’re only seeing mild gains though so if we get some disappointing earnings today I’m not convinced they’ll be able to hold on to them,” said Craig Erlam, senior market analyst at Oanda, in emailed comments.
The indicated gains come after a downbeat session on Wednesday when allegations about improprieties at Valeant Pharmaceuticals International Inc. VRX, -19.17% weighed on the S&P 500’s health-care sector and pressured the broader market.
Earlier on Wednesday, a successful listing of Ferrari NV RACE, +5.77% and a series of deal news had helped lift the markets into positive territory.
Thursday’s earnings: Corporate news were also among Thursday’s highlights, with a long list of companies reporting earnings ahead of the bell.
Doughnut chain Dunkin’ Brands Group Inc. DNKN, -1.82% said third-quarter adjusted earnings rose to 52 cents a share, slightly beating estimates.
Shares of Eli Lilly & Co. LLY, -1.00% rose 2.6% after the drug maker raised its 2015 earnings forecast after third-quarter profit beat estimates.
Dow Chemical DOW, -0.44% jumped 7.4% premarket after announcing a dividend hike and a share buyback.
Sports-clothing maker Under Armour Inc. UA, +2.30% added 2.5% ahead of the bell after raising its 2015 revenue forecast.
Southwest Airlines Co. LUV, -0.82% climbed 4.8% after posting an 83% rise in third-quarter profit.
Post-it Notes maker 3M Co. MMM, +0.48% machinery company Caterpillar CAT, -3.47% and McDonald’s MCD, -1.25% also report premarket.
Source: MarketWatch
