US Futures Rise on High Earnings Reports

US stock index futures climbed higher as companies kicked off earnings season with stellar earning reports


US stock index futures climbed on Tuesday with strong earnings from Netflix, UnitedHealth, Johnson & Johnson fueling optimism over the expected strongest earnings season in seven years.

The Dow e-minis climbed up 151 points, or 0.61 percent, while the S&P 500 e-minis gained 13.75 points, or 0.51 percent. Nasdaq  100 e-minis increased 34.5 points, or 0.51 percent.

Netflix shares swelled 6.44 percent during the premarket trading. Netflix has recently exceeded analysts’ quarterly subscriber estimates. The gains were supported by the skyrocketing numbers of subscribers and the string of original contents.

The Dow Jones Industrial Average is currently 0.6 percent down so far this year. Meanwhile, it still gained a lot this earnings season, with health stocks leading the gains.

UnitedHealth gained 1.78 percent after it raised its earnings forecast while posting earnings report, which beat Wall Street estimates. UnitedHealth is the largest US health insurer.

Johnson & Johnson gained 0.94 percent after it reported a 12.6 percent jump in sales. Goldman Sachs shares increased 0.4 percent after it reported a 27 percent gain in profits.

Tesla shares plummeted 0.84 percent after it suspended its Model 3 assembly line. This move was believed to be a part of a production pause.

The results are expected to fuel further optimism regarding the first quarter growth. This year’s first quarter earnings season is expected to be the highest in 7 years. According to data, analysts agree that S&P companies’ profits have risen 18.6 percent during the first quarter.

Meanwhile, market participants have shifted their focus alternatively from geopolitical issues and trade worries. These concerns have battered the market in recent months.

On the other hand, the trade disputes between the United States and China continue to brew tensions. During an initial anti-dumping ruling, Beijing proposed to impose a heavy temporary deposit on imports of US sorghum. Archer Daniel, which is among the leading sellers of US sorghum into China, slumped down 0.9 percent.

This proposal came after the United States prohibited American companies from selling parts and software to China’s ZTE Corporation for 7 years.

In addition, an attack on Syria led by the United States over the weekend has not yet encouraged any military attack from Russia. This silence or subdued reaction has eased fears that the conflict may escalate further and turn into an all-out war between the US and Russia.


Russia and China Play ‘Currency Devaluation Game’ – Trump

US president Donald Trump accused China and Russia of devaluating their currencies as the United States increased its interest rates.

“Russia and China are playing the Currency Devaluation games as the US keeps raising interest rates. Not acceptable!” Trump tweeted on a post.

Trump was talking about what he thinks are unfair trading benefits. Since Trump’s rise to power, the US dollar has weakened significantly against many other currencies, which include the Chinese yuan.

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