By Barbara Kollmeyer, MarketWatch
McDonald's among companies set to report results
U.S. stock benchmarks early Tuesday looked set to add to the
previous session's rally, as investors focus on the prospect of tax
reforms, while investors digest a deluge of corporate earnings from
the likes of Dow components McDonald's Corp.
Data on confidence, home prices and home sales are also coming
up.
Dow Jones Industrial Average futures jumped 112 points, or 0.6%,
to 20,809, while S&P 500 futures added 4.25 points to 2,374.75.
Nasdaq-100 futures added 12 points to 5,516.
Analysts said the focus on European politics was being replaced
by U.S. concerns. These include the tax reforms promised for
Wednesday from President Donald Trump's administration, who will
mark his first 100 days in office on Saturday.
Monday's rally
(http://www.marketwatch.com/story/us-stocks-poised-to-rally-as-investors-breathe-sigh-of-relief-over-french-vote-2017-04-24)
was inspired by centrist Emmanuel Macron's win in the first round
of the French presidential election, momentarily calming fears that
antiestablishment politicians would challenge the status quo.
Shaking off mounting anxieties around political uncertainty,
so-called risk assets soared around the globe, highlighted by the
best gains for U.S. stocks since March. The Dow soared 216.13
points, or 1.1%, to close at 20,763.89, while the S&P 500
advanced 1.1% to end at 2,374.15.
The Nasdaq Composite finished 1.2% higher at 5,983.82, marking a
record finish for the tech-heavy gauge.
Read: Trump seeks corporate tax rate of 15% in plan
(http://www.marketwatch.com/story/trump-seeks-corporate-tax-rate-of-15-in-plan-2017-04-24)
Bank stocks gained Monday, with the Financial Select Sector SPDR
ETF (XLF), which tracks the S&P 500's financials rose 2.25% and
Goldman Sachs Group Inc. (GS), for instance, up nearly 3%.
That positive momentum could continue, "particularly if Trump
can kick-start his reform plans around taxation," Chris Beauchamp,
chief market analyst at IG, said in a note to clients.
In the back of investors' minds are worries about a potential
government shutdown on Saturday. But those may have eased, after
Trump backed off on a demand for border-wall funding
(http://www.marketwatch.com/story/trump-backs-off-demand-for-immediate-border-wall-funding-2017-04-24)
seen as blocking a deal.
See:Should Wall Street fear a government shutdown? How stocks
fared in the past
(http://www.marketwatch.com/story/should-wall-street-fear-a-government-shutdown-heres-how-stocks-fared-during-past-closures-2017-04-21)
Turning to data, the Case-Shiller U.S. home-price index for
February will be released at 9 a.m. Eastern Time. The Conference
Board's consumer confidence survey for April and new-home sales for
March are both due at 10 a.m. Eastern.
Check out:After 17 years, S&P 500 tech sector finally
regains lost ground
(http://www.marketwatch.com/story/after-17-years-sp-500-tech-sector-finally-regains-lost-ground-2017-04-24)
Stock movers: An long list of companies are reporting on Tuesday
ahead of the bell. Better-than-expected results lifted shares of
DuPont
(http://www.marketwatch.com/story/dupont-offers-downbeat-outlook-for-current-quarter-2017-04-25)(DD)
by 2% and Biogen Inc
(http://www.marketwatch.com/story/dupont-offers-downbeat-outlook-for-current-quarter-2017-04-25).(BIIB)
by around 5%. Rite Aid Corp.(RAD) jumped 4.6% on an earning beat
(http://www.marketwatch.com/story/rite-aid-shares-jump-after-earnings-beat-2017-04-25).
Caterpillar Inc. (CAT)jumped in premarket trade after the
industrial giant lifted its full-year revenue to a range of $38
billion to $41 billion, and reported better-than-expected
results.
Lockheed Martin Corp.(LMT) saw its shares slide after reporting
lower-than-expected revenues.
Shares of Coca-Cola Co
(http://www.marketwatch.com/story/coca-cola-misses-first-quarter-earnings-expectations-2017-04-25).(KO)traded
lower in premarket trade after the beverage giant missed
first-quarter earnings expectations
(http://www.marketwatch.com/story/coca-cola-misses-first-quarter-earnings-expectations-2017-04-25).
It reported net income of $1.18 billion, or 27 cents per share,
down from $1.48 billion, or 34 cents per share in the year-earlier
period.
3M Co.(MMM) reported first-quarter results that beat
expectations, with profits and sales rising above Street estimates
(http://www.marketwatch.com/story/3ms-stock-jumps-after-profit-and-sales-rise-above-expectations-2017-04-25).
Eli Lilly & Co
(http://www.marketwatch.com/story/eli-lilly-swings-to-loss-on-higher-sales-cuts-2017-eps-view-2017-04-25).(LLY)swung
to a first-quarter loss
(http://www.marketwatch.com/story/eli-lilly-swings-to-loss-on-higher-sales-cuts-2017-eps-view-2017-04-25)
of $110.8 million, or 10 cents a share, stemming from the
drugmaker's purchase of CoLucid Pharmaceuticals Inc.
Looking ahead are reports from McDonald's (MCD),
Straight Path Communications Inc.(STRP) rose nearly 4% in
premarket action after the telecommunications company said that
AT&T Inc. (T) has five days to match a "superior" buyout bid it
has received.
(http://www.marketwatch.com/story/straight-path-says-att-has-5-days-to-match-a-superior-buyout-bid-it-received-2017-04-25)
Read:Three infrastructure stocks to buy -- regardless of Trump's
spending plans
(http://www.marketwatch.com/story/three-infrastructure-stocks-to-buy-regardless-of-trumps-spending-plans-2017-04-25)
Other markets: European stocks rose modestly
(http://www.marketwatch.com/story/european-stocks-snag-modest-gains-after-french-election-rally-2017-04-25)
after the prior day's French election rally, while in Asia ,
equities rose across the board
(http://www.marketwatch.com/story/asian-stocks-build-on-gains-and-this-time-china-joins-in-2017-04-24).
Investors in Asia kept a close eye on tensions in the Korean
Peninsula. North Korea marked the anniversary of the founding its
military with a large live-fire exercise, as a U.S. aircraft
carrier strike group docked in South Korea as planned, reported
Reuters
(http://www.marketwatch.com/story/north-korea-reportedly-conducts-live-fire-exercise-as-us-submarine-docks-in-the-south-2017-04-25).
There had been concerns that North Korea could mark Tuesday's
anniversary with another nuclear test of that of a long-range
missile.
See:White House calls in all 100 senators for unusual briefing
on North Korea
(http://www.marketwatch.com/story/white-house-to-brief-full-senate-as-trump-calls-north-korea-real-threat-to-the-world-2017-04-24)
The dollar rose against the yen, but fell against the euro and
British pound .
Oil prices
(http://www.marketwatch.com/story/oil-rises-as-bargain-hunters-snap-to-attention-2017-04-25)
marked gains after Monday's sharp pullback, while gold prices saw
fresh losses, down $5.90 to $1,271.70 an ounce.
(END) Dow Jones Newswires
April 25, 2017 07:53 ET (11:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.