Wall Street Opens Higher on Upbeat Earnings News

By Investors Hub

The major U.S. index futures are pointing to a higher opening on Tuesday, with stocks likely to add to the gains posted in the previous session.

A positive reaction to earnings news from Dow components Coca-Cola (KO) and United Technologies (UTX) may contribute to early strength on Wall Street.

Shares of Coca-Cola are jumping by 3.8 percent in pre-market trading after the beverage giant reported second quarter results that beat analyst estimates and raised its full-year revenue forecast.

Conglomerate United Technologies is also seeing pre-market strength after reporting better than expected second quarter results and boosting its full-year outlook.

On the other hand, fellow Dow component Travelers (TRV) may move to the downside after the insurer reported second quarter earnings that missed expectations.

Snapchat parent Snap Inc. (SNAP), Chipotle Mexican Grill (CMG), and Visa (V) are among the companies due to report their quarterly results after the close of today?s trading.

Stocks moved mostly higher during the trading session on Monday, rebounding following the pullback that was seen last week. Buying interest was somewhat subdued, however, limiting the upside for the major averages.

The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq climbed 57.65 points or 0.7 percent to 8,204.14, the Dow edged up 17.70 points or 0.1 percent to 27,171.90 and the S&P 500 rose 8.42 points or 0.3 percent to 2,985.03.

The higher close on Wall Street partly reflected optimism about upcoming earnings news, as a slew of big-name companies are due to report their quarterly results this week.

Amazon (AMZN), AT&T (T), Boeing (BA), Caterpillar (CAT), Facebook (FB), Alphabet (GOOGL), Intel (INTC), McDonald’s (MCD), and Twitter (TWTR) are just a few of the companies due to report their quarterly results.

According to FactSet data, 79 percent of S&P 500 companies have reported better than expected quarterly earnings so far this earnings season.

Nonetheless, the looming deluge of earnings reports kept some traders on the sidelines today, with just a few companies reporting their results before the start of trading.

Logitech (LOGI), TD Ameritrade (AMTD) and Whirlpool (WHR) are among the companies due to report their results after the close.

Traders were also reluctant to make significant moves amid a quiet day on the U.S. economic front, looking ahead to reports on new and existing home sales, durable goods orders, and second quarter GDP in the coming days.

Oil service stocks moved sharply higher over the course of the trading session, driving the Philadelphia Oil Service Index up by 3 percent.

Halliburton (HAL) led the oil service sector higher, spiking by 9.2 percent after reporting better than expected second quarter earnings.

Significant strength was also visible among semiconductor stocks, with the Philadelphia Semiconductor Index jumping by 2 percent to its best closing level in well over two months.

Chipmaker Micron Technology (MU) posted a standout gain after Goldman Sachs upgraded its rating on the company’s stock to Buy from Neutral.

Computer hardware and software stocks also saw notable strength on the day, while tobacco stocks showed a substantial move to the downside.