U.S. stock futures were up Tuesday as investors were upbeat ahead of Apple's quarterly results due out after the closing bell today, and as a plethora of earnings reports from industry majors were considered.
Futures on the three main U.S. market indices were up between 0.2% and 0.3% as at 8:25am ET, after ekeing out small gains on Monday, despite McDonald's (NYSE:MCD) results disappointing investors, with the S&P 500 landing yet another record finish.
On the economic front this morning, the calendar is light, with just the Federal Housing Finance Agency’s home-price index for May scheduled for 9:00am ET, and the Richmond Fed manufacturing index due out at 10:00am ET.
In corporate news, Apple (NASDAQ:AAPL) was set to steal the spotlight on Tuesday on a relatively quiet day, with the tech giant expected tor report earnings of $7.30 per share after the closing bell, down from $9.32 a year ago, with flat revenue at $35.01 billion.
AT&T (NYSE:T) is also reporting after the closing bell, and is anticipated to report a profit of 68 cents, up from 66 cents last year.
Ahead of the open, United Parcel Service (NYSE:UPS) reported its second-quarter profit fell 4% as higher expenses offset better revenue, though volumes were up. The company reported a profit of $1.07 billion, or $1.13 a share, down from $1.12 billion, or $1.15 a share, a year earlier. Revenue grew 1.2% to $13.51 billion. Analysts surveyed by Thomson Reuters expected a profit of $1.13 a share on revenue of $13.59 billion.
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) reported Tuesday its second-quarter profit fell to 49 cents per share, down from 74 cents a year earlier, though still topping analysts' expectations of 39 cents a share. Revenue, however, came in at $4.29 billion, well short of estimates of $4.39 billion. Shares of the company gained 1.9% premarket.
After Monday’s closing bell, Netflix Inc. (NASDAQ:NFLX) reported better-than-expected second-quarter earnings, but its subscriber growth didn’t meet some analysts’ targets. Its stock fell almost 5% premarket.
In other news, Cisco Systems Inc. (NASDAQ:CSCO) said it has agreed to buy cybersecurity firm Sourcefire Inc. (NASDAQ:FIRE) in a deal worth around $2.7 billion, with the transaction expected to close in the second half of this year.
PacWest Bancorp (NASDAQ:PACW) has agreed to buy CapitalSource (NYSE:CSE) for $2.29 billion in cash and stock. The purchase values CapitalSource at $11.68 a share, or a 19% premium to its close of $9.83 yesterday.
Elsewhere, the Commodity Futures Trading Commission has reportedly told Goldman Sachs, Glencore, Noble Group and other companies that operate aluminum warehouses to retain internal documents and emails related to the business, as an investigation may be underway. The news comes ahead of a Senate hearing today into the commodities operations of major banks such as JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS).
Meanwhile, U.S. Bankruptcy Court Judge Steven Rhodes has set an initial hearing for Detroit for tomorrow, when the city will request federal court protection from lawsuits.
In news abroad, a Chinese newspaper cited Premier Li Keqiang as saying last week at a meeting of the State Council that the government will take action to ensure economic growth doesn’t fall below 7%. Markets in Asia closed higher, with the Shanghai Composite gaining 1.95%.
Gold futures fell slightly by $5.50 to $1,330.50 in electronic trade, while oil futures shed 77 cents to $106.17 a barrel.
European markets were higher today with shares in France leading the region. The CAC 40 was lately up 0.23% while Germany's DAX gained 0.22% and Britain's FTSE 100 added 0.19%.