By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures indicated a higher
opening as Wall Street on Tuesday, driven by hopes for central-bank
stimulus and as earnings season grinds on, with Morgan Stanley and
Johnson & Johnson due to report.
The only data on tap will gauge the mood in the key home
building industry.
U.S. markets were closed on Monday in observance of the Martin
Luther King Jr. holiday.
Futures for the Dow Jones Industrial Average (DJH5) rose 52
points, or 0.3%, to 17,484, and those for the S&P 500 index
(SPH5) picked up 7.8 points, or 0.4%, to 2,020.70. Nasdaq-100
futures (NDH5) were higher by 21 points, or 0.5%, at 4,155.
"With investors crying out for more stimulus from China and the
eurozone to keep the global economic train on track, the increasing
likelihood they will get their wish sooner rather than later is
giving equities a short-term boost," wrote Mike McCudden, head of
derivatives at stockbroker Interactive Investor, in a Tuesday
note.
Overnight, China said gross domestic product expanded 7.4% last
year, beating market expectations of 7.2%. Still, that marked the
slowest rate of growth since 1990 for the world's second-largest
economy. Meanwhile, European equities were trading around
seven-year highs ahead of an expected unleashing of a sovereign
bond-buying plan by the European Central Bank when policy makers
meet on Thursday.
On Wall Street's agenda Tuesday will be quarterly results from
Morgan Stanley (MS) and Johnson & Johnson (JNJ) ahead of the
opening bell. The investment bank and the consumer products
heavyweight are each expected to report higher earnings and
revenue.
Delta Air Lines Inc. (DAL) and Halliburton Co. (HAL) are also
expected to report increases in earnings before trading opens.
At 10 a.m., the National Association of Home Builders is due to
release its gauge of confidence among home builders for this
month.
Also at 10 a.m. Federal Reserve Governor Jerome Powell, a member
of the Federal Open Market Committee, is slated to speak at the
Brookings Institution on improving financial market conduct and
structure.
U.S. stocks on Friday ended a turbulent session higher, with the
S&P 500 (SPX), the Dow Jones Industrial Average (DJI) and the
Nasdaq Composite Index (RIXF) each gaining at least 1%. Stocks had
been aided a rally in oil prices and calmer currency markets, but
the indexes still marked a fourth consecutive weekly loss.
Stocks to watch:SAP SE (SAP) dropped its midterm profit margin
forecast and reported a 1% decline in fourth-quarter profit, hurt
by its shift to cloud-based products.
Google Inc. (GOOG) is close to investing about $1 billion in
Space Exploration Technology Corp. to support its effort to deliver
Internet access via satellites, according to The Wall Street
Journal. Space X is backed by Tesla Motors Inc. (TSLA) chief Elon
Musk.
Twitter Inc.(TWTR) in a blog post Tuesday said it's buying
India-based mobile-marketing company ZipDial for an undisclosed
sum.
DreamWorks Animation SKG Inc.(DWA) last week started letting
workers go, The Wall Street Journal reported.
Other markets: Chinese stocks rose nearly 2% after Monday's
selloff and Japan's Nikkei Average closed 2.1% higher, its
strongest percentage gain in a month.
Gold futures (GCG5) were up more than 1%. Oil futures (CLH5)
fell 3%, trading below $48 a barrel.
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