By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.S. stocks were looking at a higher
open on Thursday, with better-than-expected quarterly results from
Caterpillar Inc. bolstering futures for the Dow Jones Industrial
Average.
Shares of 3M Co. and General Motors Co. also moved up ahead of
the bell following quarterly results from the industrial
conglomerate and the auto maker. Stock futures revved up earlier
after key eurozone data came in better than anticipated, and
updates on the U.S. manufacturing sector and the labor market are
on deck for Thursday's session.
Futures for the Dow Jones Industrial Average (DJZ4) climbed 99
points, or 0.6%, at 16,525, and those for the S&P 500 (SPZ4)
gained 10 points, or 0.5%, to 1,935. Futures for the Nasdaq-100
(NDZ4) jumped 21 points, or 0.5%, to 3,970.
Dow futures before the deluge of corporate results surged by
more than 100 points after data firm Markit said the initial
October reading of its eurozone manufacturing purchasing managers
index reached a two-month high at 50.7, above expectations of a
reading at 50. The report offered some upbeat news at a time when
worries about slowing global economic growth have prompted
investors to sell off equities world-wide.
But the report also suggested manufacturers and service
providers don't expect a significant pickup in the pace of activity
in the coming months.
U.S. stocks on Wednesday finished lower, with the S&P 500
index (SPX) losing 0.7%, the Dow Jones Industrial Average (DJI)
down 0.9% and the Nasdaq Composite (RIXF) off 0.8%.
Data: Markit will release its initial October purchasing
manufacturing index for the U.S. at 9:45 a.m. Eastern Time. Ahead
of that, the Labor Department is slated to release weekly
jobless-claims data at 8:30 a.m. Eastern Time. Economists polled by
MarketWatch expect an increase in claims back up to 285,000.
The Federal Housing Finance Agency at 9 a.m. Eastern is
scheduled to post a report on home prices for August, and the
Conference Board's leading indicators data are set for release at
10 a.m. Eastern.
Earnings: Ahead of the opening bell, shares of Dow industrials
component Caterpillar (CAT) leapt 6%. The heavy-equipment maker
raised its earnings outlook for the year to $6.50 a share, from
$6.20, while keeping the midpoint of its revenue view unchanged.
Third-quarter adjusted earnings of $1.72 a share outstripped
expectations of $1.36 a share.
3M (MMM), another component of the Dow Jones Industrial Average,
said third-quarter earnings were $1.98 a share, above expectations
of $1.96 a share from a FactSet survey of analysts. Sales of $8.1
billion, however, were shy of Wall Street's estimate of $8.227
billion. Shares of the maker of Post-it notes and other industrial
goods rose 1.5%.
General Motors (GM.XX) posted earnings, excluding one-time
costs, of 97 cents a share, higher than projections of 95 cents a
share. GM rose 2%.
Cable company Comcast Corp. (CMCSA) said third-quarter profit
climbed 50%, benefitting from a one-time income-tax adjustment and
a boost in earnings at its NBCUniversal entertainment unit. Shares
edged up 0.1% premarket.
Drug maker Eli Lilly & Co. (LLY) reported a 58% drop in
third-quarter earnings and a 16% fall in revenue, driven by patent
expirations and competition from generic medications.
Southwest Airlines Co. (LUV) reported third-quarter adjusted
earnings of 55 cents a share, more than Wall Street's estimate of
53 cents a share. Shares gained 2.9% in premarket trade.
Under Armour (UA), which makes athletic apparel, reported
third-quarter profit and sales above expectations, but shares fell
4.3% in premarket trade after surging 51% so far this year.
Elsewhere premarket, shares of Yelp (YELP) dropped 12%. The
online review site late Wednesday posted better-than-expected
third-quarter results but issued a weak outlook.
After the bell, Amazon.com Inc. (AMZN) and Microsoft Corp.
(MSFT) will release financial reports.
Other markets: In Asia overnight, stocks in Tokyo and Hong Kong
finished modestly lower. European stocks were swung between gains
and losses. Gold futures (GCZ4) fell and oil prices (CLZ4) edged
up.
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