Stock Futures Gain on Bright Earnings Kickoff, Alcoa Edges Higher
NEW YORK ( TheStreet) -- Stock futures were rising alongside the international markets, pointing to a fourth session of gains in the S&P 500 Tuesday after aluminum giant Alcoa
Futures for the S&P 500 were rising 5.25 points, or 6.14 points above fair value, to 1,640.75. Futures for the Dow Jones Industrial Average were gaining 33 points, or 40.31 points above fair value, to 15,193. Futures for the Nasdaq were advancing 9.25 points, or 8.82 points above fair value, to 2,968.
"As investors grow more comfortable with the notion that less Fed actually implies inherent strength within the U.S. economy, it seems there is a growing acceptance to a further assault on new highs," Andrew Wilkinson, the New York-based chief economic strategist at Miller Tabak said in a client note.
The S&P 500 gained for a third session Monday heading into the beginning of the earnings season, compounding on advances driven by last week's upbeat nonfarm payrolls report and driving the index to just shy of its all-time closing high of 1,669.16 achieved on May 21. According to Thomson Reuters data, earnings of S&P 500 companies are expected to increase 2.9% for the second quarter.
After the market close Monday, Alcoa reported losses in the second-quarter following restructuring costs, yet still managed to beat analysts' expectations. Alcoa reported losses of 11 cents a share, losing $119 million for the quarter. Excluding restructuring and legal fees, the company earned 7 cents a share on $5.85 billion in revenue. Analysts polled by Thomson Reuters were looking for earnings of 6 cents a share on $5.83 billion in sales.
The company on Monday maintained its estimate that global aluminum demand would persist at a 7% pace this year, spearheaded by China, where Alcoa reiterated its growth improvement outlook of 11%.
Shares were gaining 0.88% to $7.99 in premarket trading.
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