U.S. stock index futures moved higher on Tuesday as the busiest day so far of earnings season kicked into gear. Dow component DuPont reported profit that beat expectations by a penny and said it is exploring selling its performance chemicals unit. The news sent shares up more than 2 percent in premarket trading. While dozens of companies are reporting, the greatest anticipation is being saved for Apple, which Wall Street expects to show a $7.32 per share profit and $35 billion in revenue an in after-the-bell report. Shares edged higher in the morning. Apple's sales are closely watched for what they say about the broader industry. Technology has been one of the most disappointing sectors so far, with results fromMicrosoft, Google, and Intel missing analysts' forecasts.
Elsewhere in earnings, Dow component Travelers reported profit of $2.13 per share, well ahead of estimates. However, top-line revenue came in light at $5.82 billion, well below the Street view of $5.97 billion. Still, traders were satisfied and sent shares up 2.4 percent. And UPS matched estimates with profit of $1.13 a share, sending the stock up 1.6 percent. Other companies reporting numbers before the start of trade on Tuesday include United Tech, plus UPS,Lockheed Martin, Air Products, Peabody Energy, Ryder System, AK Steel, Freeport McMoRan, Illinois Tool Works, Altria, Valero Energy and TD Ameritrade. Dow component AT&T will report after the market closes, along with VMWare, Norfolk Southern, Panera Bread, Broadcom, and Discover Financial. In global markets, Chinese stocks boosted shares across Asia following market rumors that China could take stimulus measures to boost its economy. Chinese shares outperformed after state newspaper Beijing News reported that Chinese Premier Li Keqiang had said the government would not allow the country's gross domestic product growth to fall below 7 percent.
Comments from China's vice-premier, Zhang Gaoli, also bolstered sentiment this week. He reiterated Beijing's commitment to supporting the export and services industries, while steering the economy towards consumer-oriented growth, according to Reuters. The Shanghai Composite rallied 2 percent on Tuesday, while the Hang Seng Index jumped 2.5 percent. Elsewhere, South Korea's Kospi hit a five-week high.
"Momentum remains positive for equities, which were given a further boost this morning as Premier Li confirmed that the minimum level for growth in China would be 7 percent, raising the potential prospect of stimulus measures to support the Chinese economy and its bottom line growth target," Rebecca O'Keeffe, head of investment at Interactive Investor, said on Tuesday. Meanwhile, shares in Europe were boosted by the announcement of two major M&A deals. French media and telecoms conglomerate Vivendi has entered talks to sell its majority stake in Maroc Telecom to Dubai's Etisalat for 4.2 billion euros ($5.54 billion). Plus, telecoms firms Telefonica and KPN announced they will combine their German mobile businesses, helping them compete with bigger rivals Deutsche Telekom and Vodafone.
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