Stock Futures Extend Monday's Gains as Crude Climbs
New York (Apr 29) Stock futures added to Monday's highs on Tuesday as crude oil rebounded above $40 a barrel. S&P 500 futures were up 0.4%, Dow Jones Industrial Average futures added 0.27%, and Nasdaq futures rose 0.65%.
The Dow crested 18,000 in intraday trading on Monday, the first time it has crossed that level since July. The S&P 500 climbed 0.65% to 2,092, its best close of the year, while the Nasdaq rose 0.44%.
Crude oil jumped on Tuesday on news an oil worker strike in Kuwait had cut output to 1.1 million barrels a day from 2.8 million, easing worries over a global supply glut. Crude had sold off on Monday after weekend talks among members of the Organization of Petroleum Exporting Countries failed to culminate in a deal on a production freeze. West Texas Intermediate crude oil was up 1.7% to $40.45 a barrel on Tuesday morning.
The race to the White House heats up on Tuesday with 291 Democratic delegates and 95 Republican delegates up for grabs in the New York primary. Democratic frontrunner Hillary Clinton and controversial billionaire businessman Donald Trump are expected to win the majority in their respective races.
The number of new houses under construction in the U.S. will be released on Tuesday morning. Economists expect housing starts to decline by 0.7% in March after a blockbuster 5.2% increase in February. Meanwhile, building permits were expected to increase by 2% after sliding 3.1% in February.
Johnson & Johnson (JNJ - Get Report) climbed 1.4% after boosting its full-year earnings outlook. The company expects profit between $6.53 and $6.68 a share, up from previous guidance for $6.43 to $6.58 a share, driven by growth in its pharmaceutical and consumer businesses.
Harley-Davidson (HOG - Get Report) jumped more than 5% after breezing past first-quarter estimates. The motorcycle manufacturer reported a 1.4% increase in vehicle sales in the first quarter with total shipments up 4.3%. The company affirmed a full-year shipment outlook of 269,000 to 274,000.
Netflix (NFLX - Get Report) tumbled 10% as its outlook for new subscriber additions suggested slowing growth. The streaming giant anticipates 500,000 new U.S. subscribers in the second quarter, down from 900,000 a year earlier. Around 2 million international additions are expected, lower than 2.4 million a year ago.
IBM (IBM - Get Report) was slightly lower after suffering its 16th straight quarterly sales decline. The tech giant reported revenue of $18.68 billion, down 4.6% from its year-ago quarter, though slightly above estimates. Adjusted earnings of $2.35 a share topped analysts' expectations of $2.09.
Source: TheStreet
