By Mark DeCambre, MarketWatch
A quartet of Dow components report quarterly results on Tuesday,
including McDonald's, P&G, United Tech and Travelers
U.S. stock-index futures are trading slightly higher Tuesday
morning as a parade of corporate quarterly results were released,
including those from a quartet of Dow components: McDonald's,
Procter & Gamble Co., United Technologies and Travelers
Cos.
How are major indexes performing?
Futures for the Dow Jones Industrial Average were up 23 points,
or less than 0.1%, at 26,820, those for the S&P 500 index were
up 3 points to reach 3,009.50, a gain of 0.1%, while Nasdaq-100
futures were advancing 19 points, or 0.2%, at 7,967.25.
On Monday, the Dow ended the day 57.44 points, or 0.2%, higher
at 26,827.64, weighed by a decline in shares of Boeing Co.'s stock
(BA), following a report on Friday that said the company may have
misled federal aviation authorities
(http://www.marketwatch.com/story/boeing-stock-at-its-lowest-in-two-months-after-report-jet-maker-may-have-misled-faa-2019-10-18)
about the safety of the 737 Max jet. .
The S&P 500 index rose 20.52 points, or 0.7%, to end at
3,006.72, leaving it 0.6% away from its record closing high of
3,025.86 set on July 26. The Nasdaq Composite Index climbed 73.44
points, or 0.9%, to finish at 8,162.99, about 2% from its July
peak.
What's driving the market?
With trade negotiations between the U.S. and China reported to
be making slow progress, investors will likely train their eyes on
a deluge of corporate results, including nearly one-fourth of the
S&P 500 index components this week and four Dow components
which are due to report early Tuesday.
Against the backdrop of slowing economic growth, analysts have
cut projections for 2020 earnings for S&P 500 corporations by
0.5%, according to Bloomberg News, citing its proprietary data
provide
(https://www.bloomberg.com/news/articles/2019-10-21/knife-hits-2020-profit-estimate-in-replay-of-pre-plunge-revision)r,
despite results that have mostly come in better than expected so
far in the third-quarter.
"So far, earnings season has been much better than most
initially feared, as the banks painted a healthy picture of the US
consumer," wrote Edward Moya, senior market analyst at brokerage
Oanda, in a Tuesday brief. "This week, we will see how consumer
staples and discretionary companies soften their outlooks."
Looking ahead, investors will get an update on the health of the
U.S. housing market with a report on existing-home sales for
September due at 10 a.m. Eastern Time, and a regional manufacturing
survey, the Richmond Fed Manufacturing index, due at the same
time.
Meanwhile, Dallas Federal Reserve Bank President Robert Kaplan
is set to moderate a conversation with Bank for International
Settlements General Manager Agustin Carstens.
On the trade front, President Donald Trump said Monday that a
deal between Washington and Beijing is going "very well
(http://www.marketwatch.com/story/trump-says-us-china-trade-deal-coming-along-very-well-2019-10-21)."
Top trade negotiator Robert Lighthizer also said that the U.S. aims
to finish the first phase of talks by mid-November when the two
countries meet in Chile.
Elsewhere, U.K. Prime Minister Boris Johnson was preparing to
see his Brexit plan put up for another vote, with lawmakers being
asked to approve the plan in principle, followed by a vote on the
government's schedule for debate and possible amendments.
Which stocks are in focus?
Procter & Gamble Co. shares (PG) were gaining after the
company delivered its third-quarter results and dialed up its
expectation for 2020 sales growth, up 3% to 5% from previous
guidance of 3% to 4% growth.
United Parcel Service Inc.'s stock (UPS) gained after the
package-shipping company delivered third-quarter results that
outperformed analysts' consensus estimates.
Shares of Hasbro Inc. (HAS) sank in premarket trading Tuesday,
after the toy maker reported third-quarter profit and revenue that
missed expectations, as weakness in franchise brands and trade
uncertainty offset strength in partner brands.
Biogen Inc. shares (BIIB) were soaring in premarket action
Tuesday after the company submitted a plan for an Alzheimer
drug.
Under Armour Inc. (UAA)
(http://www.marketwatch.com/story/under-armour-names-patrik-frisk-ceo-succeeding-ceo-and-founder-kevin-plank-2019-10-22)(UAA)said
CEO Kevin Plank was stepping down
(http://www.marketwatch.com/story/under-armour-names-patrik-frisk-ceo-succeeding-ceo-and-founder-kevin-plank-2019-10-22)and
named Patrik Frisk its new chief effective Jan. 1, 2020.
JetBlue Airways Corp. (JBLU) said Tuesday it had net income of
$187 million
(http://www.marketwatch.com/story/jetblue-shares-fall-premarket-as-earnings-beat-but-airline-offers-soft-guidance-2019-10-22),
or 63 cents a share, in the third quarter, up from $50 million, or
16 cents a share, in the year-earlier period. Shares of the airline
company were up 0.2% in premarket action Tuesday.
Shares of Harley-Davidson Inc. (HOG) were higher after the
Milwaukee motorbike maker reported results that were better than
expected
(http://www.marketwatch.com/story/harley-davidson-shares-up-22-premarket-after-earnings-beat-2019-10-22)
and increased its full-year projection for motorcycle
shipments.
Shares of Lockheed Martin Corp. (LMT) were off after the defense
contractor reported third-quarter results, with sales $15.17
billion, versus $14.32 billion a year ago, above the FactSet
consensus $14.87 billion.
Earnings for McDonald's Corp. (MCD) were expected Tuesday
morning also.
Read: McDonald's earnings preview: Buy-one-get-one, spicy
barbecue chicken drove sales
(http://www.marketwatch.com/story/mcdonalds-earnings-preview-buy-one-get-one-spicy-bbq-chicken-drove-sales-2019-10-21)
How are other markets performing?
The 10-year Treasury note yield was down 1.2 basis points to
1.780% on Tuesday.
West Texas Intermediate crude for November delivery was under
pressure
(http://www.marketwatch.com/story/oil-prices-set-for-second-skid-in-a-row-as-investors-fret-about-crude-demand-2019-10-21),
shedding 47 cents, or 0.9%, to settle at $53.31 a barrel on the New
York Mercantile Exchange.
Gold for December delivery on Comex edged up $1.60, or 0.1%, at
$1,489.70 an ounce, after slipping 0.4% to settle at $1,488.10 an
ounce on Monday.
The ICE U.S. Dollar Index , which tracks the performance of the
greenback against six major rivals, rose about 0.1% to 97.421.
Global stock-markets were also trading higher at the start of
the week. The Stoxx Europe 600 was trading less than 0.1% higher.
In Asia, China's CSI 300 index finished up 0.4% and the Shanghai
Composite Index gained 0.5%, while Hong Kong's Hang Seng Index
advanced 0.2%.
(END) Dow Jones Newswires
October 22, 2019 08:03 ET (12:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.