Published April 16, 2013
FOX Business: Capitalism Lives Here
U.S. stock-index futures rallied on Tuesday on the heels of Wall Street's worst selloff of the year as traders responded to several upbeat corporate reports and mostly strong data.
As of 8:40 a.m. ET, Dow Jones Industrial Average futures rallied 140 points to 14652, S&P 500 futures jumped 15 points to 1559 and Nasdaq 100 futures climbed 27 points to 2811.
The markets took a thrashing on Monday, with the Dow and S&P 500 taking their worst falls since last November. The tech-heavy Nasdaq stumbled the most since June. The move was driven by a confluence of factors, from weak data in China, to a collapse in the commodities complex, to news of the bombings in Boston.
The markets were poised to open higher on the day, as traders took advantage of the beaten-down stock prices. Meanwhile, gold futures climbed $26.80, or 2%, to $1,388 a troy ounce following the biggest selloff in a percent basis in three decades. The benchmark U.S. crude oil contract was essentially flat at $88.66 a barrel after plummeting 2.8% in the last session.
The docket of corporate and economic events was full on the day.
Coca-Cola (KO) unveiled adjusted first-quarter profits of 46 cents a share, topping estimates by a penny. Sales of $11.03 billion also beat expectations of $10.94 billion. Goldman Sachs (GS) posted diluted, first-quarter earnings of $4.29 a share, compared to $3.92 in the same period in 2012. It wasn’t immediately clear whether the figure was comparable to estimates of $3.88 a share. Revenues of $10.09 billion topped expectations of $9.72 billion.
Johnson & Johnson (JNJ) posted adjusted first-quarter earnings of $1.44 a share on revenues of $17.5 billion, topping expectations of $1.40 a share on $17.42 billion.
The Commerce Department said housing starts jumped 7% in March from February to an annualized 1.03 million-unit rate, easily beating expectations of 930,000. Permits dropped 3.9% for the month to an annualized rate of 902,000 units, falling short of forecasts of 940,000 units.
Meanwhile, a report from the Labor Department showed inflation at the consumer level fell 0.2% in March from February, compared to expectations of no change. Excluding the food and energy components, prices were up 0.1%, a slightly shallower rise than the 0.2% increase economists forecast. The headline reading climbed 1.5% from the year prior in the smallest year-to-year increase since July 2012.
Later, at 9:15 a.m. ET, the Fed provides its snapshot of industrial production for March. The gauge of the U.S. factory sector is expected to have edged up 0.2% on a month-to-month basis.
The Euro Stoxx 50 fell 0.49% to 2612, the English FTSE 100 dipped 0.46% to 6314 and the German DAX slumped 0.37% to 7685.
In Asia, the Japanese Nikkei 225 slipped 0.41% to 13221 and the Chinese Hang Seng edged lower by 0.46% to 21672.