July 21 (Reuters) – U.S. stock index futures rose on Wednesday, helped by upbeat quarterly results and forecasts from companies such as Johnson & Johnson and Harley Davidson, while shares linked to economic growth also climbed.
Johnson & Johnson (JNJ.N) gained 1.2% in premarket trading after the drugmaker forecast upbeat 2021 earnings, while Harley-Davidson Inc (HOG.N) added 3.5% as it reported a second straight quarterly profit. read more
Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak, as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.
Netflix Inc (NFLX.O), the first to report earnings from the FAANG group, said it would make a deeper dive into video games as the movie and TV streaming service projected weak subscriber growth. Its shares fell 0.3%.
Coca-Cola Co (KO.N) gained 3% after the world’s largest soda maker raised its full-year sales forecast, as demand for its beverages rebounds due to re-opening of theaters, restaurants and stadiums. read more
Analysts expect annual S&P earnings growth of 72.9% for the April-June period, a significant improvement over the 54% growth seen at the beginning of the quarter, according to Refinitiv data.
Market participants are also closely watching the second-quarter earnings season to justify sky-high valuations at which the market trades right now.
For the year so far, the benchmark S&P 500 index (.SPX) has gained 15.1% on optimism about a stronger recovery due to vaccinations and favorable monetary policy.
Energy stocks Chevron Corp (CVX.N), Exxon Mobil (XOM.N), Schlumberger NV (SLB.N), Occidental Petroleum (OXY.N), Marathon Oil (MRO.N), and Halliburton (HAL.N) climbed between 1.1% and 2.9%, tracking higher oil prices.
Rate-sensitive lenders Morgan Stanley (MS.N), Wells Fargo & Co (WFC.N), Citigroup (C.N), Goldman Sachs (GS.N), Bank of America Corp (BAC.N), and JPMorgan & Chase (JPM.N) were up between 0.3% and 1.2%.
At 6:47 a.m. ET, Dow e-minis were up 173 points, or 0.5%, S&P 500 e-minis were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis were up 6.25 points, or 0.04%.
Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; editing by Uttaresh.V
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