BEFORE THE BELL: US Stock Futures Up Before Bernanke Testimony

21st Jul 2010 13:05

By Polya Lesova U.S. stock futures gained on Wednesday, buoyed by Apple's stronger-than-expected results, as investors braced for testimony by Federal Reserve Chairman Ben Bernanke and another barrage of earnings reports. Futures on the Dow Jones Industrial Average rose 15 points to 10193. The Dow ended up 0.7% on Tuesday, reversing intraday triple-digit losses. Nasdaq 100 futures gained 11 points to 1850.70 and S&P 500 futures added 3.10 points to 1083.20. Sentiment was buoyed after Apple Inc. (AAPL) reported last night a surge in earnings due to booming demand for its iPhone and iPad devices. The spotlight Wednesday will be on Bernanke's monetary policy report to the U.S. Senate Banking Committee. "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 AG (DB) said the spotlight Wednesday will be on Bernanke's monetary policy report to the U.S. Senate Banking Committee. Bernanke will start speaking at 2 p.m., EDT, but before that investors will get a number of earnings reports from companies, including Morgan Stanley (MS), Wells Fargo & Co. (WFC) and Freeport McMoRan Copper & Gold Inc. (FCX). United Technologies Corp. (UTX) said its second-quarter net profit rose 14% to $1.1 billion on revenue of $13.9 billion. EBay Inc. (EBAY) and Starbucks Corp. (SBUX) are among the companies reporting after the U.S. stock market closes. European shares posted convincing gains, with the Stoxx Europe 600 index trading up 1.6%. 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.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 0.6% 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 $3 at $1,194.70 an ounce. -By Polya Lesova; 49 69 29725517; [email protected] (END) Dow Jones Newswires July 21, 2010 08:05 ET (12:05 GMT)