Tuesday, 23 July 2013 - 13:45
U.S. Stock Futures Point to More Gains
LONDON--U.S. stock futures pointed to another day of positive trading on Tuesday, with earnings from Apple Inc. (AAPL) likely to steal the show on a relatively quiet data day.
Futures for the Dow Jones Industrial Average (DJU3) climbed 26 points, or 0.2%, to 15,517. Those for the S&P 500 index (SPU3) added 3.20 points, or 0.2%, to 1,693.50, while futures for the Nasdaq 100 (NDU3) picked up 7 points, or 0.2%, to 3,054.50.
The outlook for an upbeat trading day on Wall Street came as the S&P 500 rose to its 23rd record close this year on Monday, after the financial and health-care sectors led the market higher.
"The risk tone in general has picked up following Federal Reserve head Ben Bernanke's dovish testimony last week in which he pledged to maintain ultra-loose monetary policies for the foreseeable future, saying the tapering of quantitative easing is not a preset course and interest [rates] will remain at record lows for an extended period," said Ishaq Siddiqi, market strategist at ETX Capital, in a note.
The earnings season will continue at full speed on Tuesday, with Apple one of the most prominent reports on tap. Analysts expect the tech major to report another drop in earnings along with flat sales, as the iPhone 5 faces stronger competition from newer smartphones. Apple shares were up 0.2% in premarket trade.
Additionally, E.I. DuPont de Nemours & Co. (DD), Lockheed Martin Corp. (LMT), United Technologies Corp. (UTX) and Valero Energy Corp. (VLO) were slated to report earnings ahead of the opening bell.
Among notable movers on Tuesday, shares of Netflix Inc. (NFLX) dropped 5.3% in premarket trade, after the online-entertainment firm late Monday reported subscriber growth below some estimates in the second quarter, although earnings surged compared with the same period a year ago.
The data calendar is light, with the Federal Housing Finance Agency's home-price index for May the spotlight among data releases. The report is scheduled for release at 9 a.m. Eastern Time.
In other financial markets, gold prices nudged lower after an impressive run on Monday, when the August contract posted the heftiest one-day rally in more than a year.
Oil prices were also on the decline, while the dollar (DXY) moved slightly higher.
Asian markets closed broadly higher, and the Stoxx Europe 600 index was on track for a fifth straight day of gains.
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HOT STOCKS TO WATCH
Among the companies with shares actively trading after hours are Netflix Inc. (NFLX), CapitalSource Inc. (CSE) and Sanmina Corp. (SANM).
Netflix Inc. posted a stronger quarterly profit and continued to add customers, a sign that its bold and in some ways risky shift in programming strategy is paying dividends. The Los Gatos, Calif., streaming video provider said it gained 630,000 U.S. streaming subscribers in the quarter ended June 30, the midpoint of its guidance range but short of Wall Street's expectations. Shares were down 4% to $251.52 after hours.
PacWest Bancorp (PACW) has agreed to acquire CapitalSource in a roughly $2.29 billion cash-and-stock deal expected to create one of the largest commercial banks in California. The transaction values CapitalSource at around $11.68 a share, a roughly 19% premium to its Monday closing price. CapitalSource's shares jumped 10% to $10.83 after hours.
Sanmina Corp., an integrated manufacturing solutions company, reported third-quarter results that beat analyst expectations, sending shares 4.8% higher to $15.99 after hours. The company also provided a fourth-quarter outlook generally in line with consensus expectations.
American Greetings Corp. (AM) disclosed the Weiss family, which has launched a bid to take the greeting-card company private for about $612 million, has no plans to further sweeten the offer.
Plywood maker Boise Cascade Co. (BCC) said Boise Cascade Holdings LLC is launching a sale of at least 10 million shares of the newly public company, which debuted in February. The company won't receive any proceeds from the stock sale by Boise Cascade Holdings, which is controlled by private-equity firm Madison Dearborn.
Corinthian Colleges Inc. (COCO) said former U.S. Secretary of Defense and director of the Central Intelligence Agency Leon Panetta has resigned from the for-profit college operator's board, a move that comes three months after he rejoined as a director.
Crane Co.'s (CR) second-quarter profit fell 12% as the diversified manufacturer's results were hurt by costs relating to an acquisition and weaker revenue, but operating margin increased.
Upscale steakhouse operator Del Frisco's Restaurant Group Inc. (DFRG), which operates restaurants under the Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse and Del Frisco's Grille brands, said at least five million shares would be sold under a secondary public offering. The stock is being offered by the company's largest shareholder, private-equity firm Lone Star Funds, and thus Del Frisco's won't receive proceeds from the stock sale.
Genesis Energy L.P. (GEL) has agreed to acquire Hornbeck Offshore Services Inc.'s (HOS) fleet of oil-transport barges and tug boats for around $230 million in an effort to boost its ocean-going capacity.
Men's Wearhouse Inc. (MW) unveiled plans to repurchase $100 million of the clothing company's common shares under an accelerated buyback program that should be completed by the end of the fourth quarter.
Standard & Poor's Ratings Services lowered its outlook on Nucor Corp. (NUE) to negative from stable, noting slow domestic economic growth and high levels of imports are pressuring the steelmaker's operating performance.
Biopharmaceutical firm Opexa Therapeutics Inc. (OPXA) will be offering 9.3 million shares to raise money to repay debt and fund clinical development of a multiple-sclerosis treatment, a Phase II study and general corporate purposes.
Rent-A-Center Inc.'s (RCII) second-quarter earnings slipped 4.9% as the provider of rent-to-own home merchandise continued to post weaker sales in its core U.S. segment, though revenue improved in its RAC Acceptance and international segments.
Solera Holdings Inc. (SLH) will be required to shed assets to resolve charges that the maker of auto-insurance software violated antitrust laws, the Federal Trade Commission said.
STMicroelectronics NV's (STM, STM.MI, STM.FR) second-quarter loss widened, as the chip maker continued a push to refocus itself on making electronic sensors and new technology for making smaller transistors.
Texas Instruments Inc. (TXN) showed improving signs in its businesses, though the company's long process of exiting the wireless chip business continues to hang over its income statement. The company on Monday reported that second-quarter profit rose 48%, largely due to a $315 million gain associated with transferring technology to an unnamed customer. Excluding that gain, however, net income still was slightly above analysts' expectations.
W.R. Berkley Corp.'s (WRB) second-quarter earnings rose 6.5% as the insurer paid out a smaller portion of premiums to cover claims and expenses while premium revenue improved.
Zions Bancorp's (ZION) second-quarter profit fell 9.4% as the Utah-based regional bank saw expenses increase along with a rise in total loans.
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(END) Dow Jones Newswires
July 23, 2013 06:45 ET (10:45 GMT)
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