Futures edge higher; S and P flirting with record high

Futures edge higher; S and P flirting with record high

U.S. stock index futures ticked higher on Thursday, with the S&P 500 aiming at a fresh record, as the second-quarter earnings season winds down on a strong note.

Futures implied the benchmark index would open at 2,859.95, about 13 points away from the record, which it last hit in late January.

A strong earnings season has kept up the momentum in the markets, helping cushion major blows from trade-related issues.

Of the 440 companies in the S&P 500 that have reported so far, 78.6 percent have beaten analyst expectations, according to Thomson Reuters I/B/E/S.

Shares of U.S.-listed Chinese stocks were higher in premarket trading, tracking a rebound in Shanghai stocks.

JD.com <JD.O> rose 0.4 percent and Baidu <BIDU.O> 0.8 percent.

Among other movers, Century Link <CTL.N> jumped 4.4 percent after reporting quarterly results.

Twenty-First Century Fox <FOXA.O> climbed 0.2 percent after its quarterly profit and revenue topped estimates, helped by the popularity of superhero movie “Deadpool 2”.

Rite Aid <RAD.N> fell 10.9 percent and was the most heavily traded stock after the drug store chain and U.S. grocer Albertsons Cos <ABS.N> agreed to terminate their merger agreement.

Perrigo <PRGO.N> fell 8.3 percent after its board approved a plan to separate its Prescription Pharmaceuticals business and after the generic drugmaker reported quarterly results.

At 7:00 a.m. ET, Dow e-minis <1YMc1> were down 1 points, or -0 percent. S&P 500 e-minis <ESc1> were up 1.75 points, or 0.06 percent and Nasdaq 100 e-minis <NQc1> were up 4 points, or 0.05 percent.

Investors are also eyeing inflation numbers to gauge the impact of tariffs on pricing and for clues on the path of interest rate hikes.

A U.S. Labor Department report is expected to show producer price index for final demand rose 0.2 percent for July from 0.3 percent in June. The data is due at 8:30 a.m. ET.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil D’Silva)

Published at Thu, 09 Aug 2018 04:49:14 -0700

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