By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures rose after upbeat
results from Apple Inc. lifted those stocks in premarket trading
and investors weighed a report that the European Central Bank may
be looking at buying corporate bonds.
Investors are waiting on existing home-sales data as well as
earnings from the likes of McDonald's Corp., Coca-Cola Co. and
others.
Extending earlier gains, futures for the Nasdaq-100 index (NDZ4)
rose 36 points, or 0.9%, to 3,901.75. Those for the S&P 500
index (SPZ4) rose 15 points, or 0.8%, to 1,914.90, while Dow
industrials futures (DJZ4) jumped 101 points, or 0.6%, to
16,431.
Shares of Apple Inc. (AAPL) rose 2% in thin premarket trading,
after the company reported a 13% rise in profit, boosted by strong
demand for its new, bigger-screen iPhones and blowing out Wall
Street estimates. Morgan Stanley lifted its price target on Apple
to $115 from $110, and analysts at the investment bank said strong
iPhone demand and gross margin expansion will help drive upside for
shares. Also read: How you could have seen Apple's beat coming
The Nasdaq Composite(RIXF) had a strong session on Monday even
before Apple reported, gaining 1.4% and bettering the 0.9% gain for
the S&P 500 index (SPX).
ECB cheer, home sales ahead: Along with stock futures, the euro
(EURUSD) fell and European stocks rallied on a Reuters report that
the ECB may be investing in the corporate bond market. Such a move
would beef up its program aimed at driving growth in the
continent's struggling economy.
Economists expect existing-home sales crept higher in September
to an annual rate of 5.10 million from 5.05 million in August. That
data is due at 10 a.m. Eastern. See the daily data preview
Shares of Travelers Cos. (TRV) and United Technologies (UTX)
both rose after results.
Ahead of that, McDonald's (MCD) is expected to report earnings
of $1.37 per share, while Coca-Cola (KO) is expected to report
earnings of 53 cents a share, according to FactSet consensus
surveys.
Yahoo Inc. (YHOO) will report after the close.
Among other stocks that may see action, Chipotle Mexican Grill
Inc. (CMG) warned sales growth may slow, even as it reported
stronger-than-expected earnings late Monday. Follow more of the
day's big movers here.
China growth slows: The Nikkei 225 index fell 2% on Tuesday,
which gave the yen (USDJPY) a boost across the board, while China's
Shanghai Composite Index fell 0.7% after data showed China's
economy grew in the third quarter at the slowest pace in five
years. Europe stocks soared on those ECB reports. and a round of
solid earnings.
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