Market Hustle: Stock Futures Rise on Earnings, Offset Chinese Growth Woes
Written by: Jane Searle
Tickers in this article: CSX INTC JNJ KO YHOO ^DJI ^GSPC ^IXIC
NEW YORK (TheStreet) -- Stock futures were rising Tuesday as solid earnings from companies such as Coca-Cola
offset concern around a slowdown in Chinese economic growth.
The U.S. Consumer Price Index rose 0.2% in March, beating expectations for a 0.1% result.
- Coca-Cola was rising 2.7% in premarket trading after its global sales rose 2% for the first quarter. Johnson & Johnson
was adding more than 2% after it said first-quarter profit rose 34%. It raised its 2014 earnings forecasts to between $5.80 to $5.90 a share, from $5.75 to $5.85 a share.
- Futures for the Dow Jones Industrial Average were rising 28.76 over fair value to 16,128.0 while futures for the S&P 500 were rising 4.54 over fair value to 1828.75. Futures for the Nasdaq were rising 13.72 over fair value to 3479.8.
- In international markets, the Hang Seng closed down 1.60% while the Nikkei added 0.62%. Data showed China's money supply grew below expectations while a measure of credit dropped 19% from a year earlier in March. Economic growth for the world's second largest economy tomorrow is forecast to have slowed to 1.5% in the first quarter.
- A military operation to take back control of cities in eastern Ukraine from pro-Russian militants has begun, an operation Ukraine's acting president described as "phased, responsible and balanced". President Barack Obama has told Russian president Vladimir Putin a diplomatic solution can still be found to the crisis, with the European Union reluctant to impose further sanctions on Russia that could threaten its economic recovery. Ukraine's central bank hiked its interest rate to 9.5% from 6.5% on Monday, citing risks to price stability -- the CPI jumped from 1.2% in February to 3.4% in March.
- Germany's DAX was shedding 0.17% as German investor confidence fell for a fourth month during April while the FTSE in the U.K. was 0.10% lower. Inflation in the U.K. slowed to its lowest annual rate in more than four years during March, supporting the Bank of England's decision to keep rates low. Annual inflation was 1.6% in March against 1.7% in February, the lowest rate since October 2009.
- Other shares expected to see price action Tuesday include Yahoo!
and Intel . Intel is slated to post first-quarter earnings of 37 cents a share while Yahoo! is expected is likely to report earnings of 37 cents a share. CSX is also due to report.
- Markets closed higher On Monday after suggestions of more QE in Europe, strong U.S. retail sales growth and better-than-expected earnings from Citigroup
-- By Jane Searle in New York