BEFORE THE BELL: US Stock Futures Higher Buoyed By Apple Results

21st Jul 2010 14:01

By Polya Lesova U.S. stock futures gained on Wednesday, buoyed by strong results from blue-chip firms including Morgan Stanley and Apple, as investors braced for testimony by Federal Reserve Chairman Ben Bernanke. Futures on the Dow Jones Industrial Average rose 43 points to 10221. Nasdaq 100 futures gained 15.25 points to 1855 and the S&P 500 futures added 4.20 points to 1084.30. Sentiment was buoyed by a string of relatively strong earnings results. U.S. investment bank Morgan Stanley (MS) said it swung to a second-quarter profit, as revenue surged. Also, Apple Inc. (AAPL) late Tuesday reported a surge in earnings due to booming demand for its iPhone and iPad devices. Second-quarter net profit at United Technologies Corp. (UTX) rose 14%, and beverage giant Coca-Cola Co. (KO) said its quarterly profit jumped 16%. Mining giant Freeport-McMoRan Copper & Gold Inc. (FCX) also reported increases in quarterly profit and revenue. Wells Fargo & Co. (WFC) said its second-quarter net income fell 3%. Shares of the firm rose 5% in premarket trade. EBay Inc. (EBAY) and Starbucks Corp. (SBUX) are among the companies reporting after the U.S. stock market closes. Aside from earnings, the spotlight Wednesday will be on Bernanke's monetary policy report to the U.S. Senate Banking Committee, which starts at 2 p.m., EDT. "Investors will be keen to listen to what he has to say after a weak recent bout of economic data could potentially open the door for a more accommodative stance from the Fed," said Nick Serff, market analyst at City Index, in a note to clients. Strategists at Deutsche Bank said traders will "listen carefully to decipher any hints about the possibility of a U.S. double-dip (recession)." In Frankfurt, European Central Bank President Jean-Claude Trichet was expected to meet with bank executives. The meeting comes ahead of Friday's release of the results from European bank stress tests. European shares posted convincing gains, with the Stoxx Europe 600 index trading up 1.9%. U.K. household products company Reckitt Benckiser PLC (RBGPY, RB.LN) agreed to buy SSL International PLC (SSL.LN) in a $3.89 billion deal that will add the Durex and Scholl brands to its portfolio. In Milan, shares of Fiat SpA (FIATY, F.MI) rallied 6% after the car maker reported a return to second-quarter profit and said it may raise its full-year outlook in the next quarter. Drug giant GlaxoSmithKline PLC (GSK) reported a second-quarter net loss of GBP304 million ($464 million), or 6 pence per share, hit by restructuring and legal charges. Sales edged up 4% to GBP7 billion. Shares were up 1.1% in London trading. In the currency markets, the euro fell 0.6% to $1.2813. Meanwhile, the Swiss National Bank said that the sharp rise of the Swiss franc, particularly against the euro, resulted in exchange-rate losses of more than CHF14 billion ($13.3 billion) in the first half of the year. In electronic trading, September crude-oil futures rose 53 cents to $78.11 a barrel ahead of government data on U.S. petroleum inventories. Gold futures gained $2.40 at $1,194.10 an ounce. -By Polya Lesova; 49 69 29725517; [email protected] (END) Dow Jones Newswires July 21, 2010 09:01 ET (13:01 GMT)