Stock Futures Rise as Verizon, PepsiCo Top Estimates
NEW YORK ( TheStreet) -- Stock futures were rising Thursday, pointing at a recovery from the prior session's decline on a busy day of earnings and economic reports that began with Verizon
New York-based Verizon was rising 1.6% to $50.35 after reporting better-than-expected first-quarter earnings as the company activated about 4 million Apple
PepsiCo was rising 1.7% to $80.15 after the snacks and beverages giant posted first-quarter earnings that beat estimates by six cents as higher prices contributed to an increase in profit margins.
Major U.S. stock markets dropped Wednesday after a string of disappointing earnings reports. The recent slide in stocks, said Scott Wren, a St. Louis-based senior equity strategist at Wells Fargo Advisers, has been due largely to a series of worse-than-forecast economic numbers from China, Europe, and the U.S., the Boston marathon tragedy and ricin scare in Washington.
"The minor pullback we have seen so far was largely caused by traders looking for an excuse to sell after the market rallied nearly 18% from last November's lows," Wren said. "We were due for some kind of a correction."
Wren said Wells Fargo Advisers' forward-looking work on leading indicators, industrial production, employment, consumer confidence and business capital spending continues to show movement in a positive direction through the end of this year and into 2014, so "for those willing to take a stand and look past a few bumps in the road, we recommend taking advantage of this minor pullback to put some sideline money to work." The S&P 500 will likely end the year higher from current levels, Wells said in a weekly client note.
Futures for the S&P 500 were up 5.25 points, or 4.59 points above fair value, to 1,551.25. Futures for the Dow Jones Industrial Average were up 37 points, or 39.41 points above fair value, to 14,589. Futures for the Nasdaq were up 11.25 points, or 10.47 points above fair value, to 2,785.75.