Stock Futures Rise as DuPont, Coach, Netflix Shine
NEW YORK ( TheStreet) -- U.S. stock futures were rising Tuesday despite weak manufacturing data from China as investors cheered earnings reports from DuPont
Futures for the S&P 500 were up 6.25 points, or 5.2 points above fair value, to 1,562.25.
"China's PMI was bad so the day started off with the futures lower. But earnings the report this morning from DD is helping the futures rally," said Jonathan Corpina, senior managing partner at Meridian Equity Partners in New York. "170 S&P 500 companies are reporting this week, so if there is momentum early, it will follow through. NLFX has been an interesting story and I think investors are looking at this as the new 'hot stock'."
DuPont was rising 0.7% to $50.74 in premarket trading after the chemicals giant reaffirmed its 2013 outlook. DuPont reported first-quarter earnings that exceeded Wall Street expectations as robust agricultural segment sales helped buffer the impact of softening demand for titanium dioxide. Dupont also raised its dividend 5%.
Coach's stock was surging in pre-market trading after the luxury retailer posted third-quarter profit that beat analysts' average estimates. Shares were up 13% to $57.30 before the market opened Tuesday.
Netflix, the online-entertainment company, was surging 24% to $216.38 after posting earnings on Monday that beat Wall Street expectations. The company had more than 36 million streaming subscribers at the end of the quarter, up 3.05 million from the previous quarter.
U.S. stocks rose Monday after Caterpillar
Futures for the Nasdaq were up 18.25 points, or 12.53 points above fair value, to 2,815.5. Futures for the Dow Jones Industrial Average were rising 66 points, or 64.83 points above fair value, to 14,565.
The preliminary number for HSBC's Purchasing Managers Index fell to 50.5 from 51.6 in March. A print above 50 indicates expansion. The slowdown in China was blamed on a fall in new export orders, which can be indicative of global demand weakness.
"As China tries to shift from investment-driven growth to one that is consumption-driven, an appreciating Chinese Renminbi encourages consumption and developed the service sector of the economy," noted Sim Han Qiang, an investment analyst at Phillip Futures Pte in Singapore. "An appreciating Chinese Renminbi undermines the export and manufacturing industries as their export will be priced higher on the international markets."
Meanwhile Germany's private sector shrank for the first time since last November amid weakness in both its services and manufacturing sectors this month.