MW: U.S. stock futures steady as earnings season eyed
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures were steady on Monday as traders waited to see if another week of earnings will deliver another big market boost.
S&P 500 futures were unchanged at 977.80 while Nasdaq 100 futures rose 1.5 points to 1,598.70. Futures on the Dow Jones Industrial Average rose 11 points.
U.S. stocks were coming off a second week of strong gains, with the S&P 500 climbing over 4%, as earnings continued to outpace expectations.
The expected earnings growth rate for S&P 500 members rose to -31%, from -35% the prior week, according to data from Thomson Reuters.
Another 146 S&P 500 companies are due to report results this week.
"The second-quarter earnings reports in the U.S., and to a lesser extent Europe, suggest that the recent trend in upgrades to analysts' earnings forecasts has further to go," said Ian Scott, chief global and European strategist at Nomura International, in a note to clients.
"We believe this sets up a healthy backdrop for the equity rally to continue in the second half."
Aetna (AET 26.44, +0.96, +3.77%) , Honeywell International (HON 33.99, -0.23, -0.67%) and Verizon Communications (VZ 31.50, +0.23, +0.74%) highlight Monday's wave of reports.
Aetna is seeking to sell its pharmacy-benefit management business, The Wall Street Journal reported.
Elsewhere, Ryanair Holdings (RYAAY 29.78, -0.61, -2.01%) dropped 10% in Dublin after cutting its profit outlook, citing an expected drop in average fares.
Pearson (PSO 10.09, -0.35, -3.35%) rallied 10% in London as the media company's first-half profit topped expectations and the company held onto its earnings outlook for the year.
On the economics front, new-home sales for June are due for release, and the U.S. Treasury is selling $6 billion of 20-year inflation protected notes.
In Asia, the Nikkei 225 closed above the 10,000 level as stocks across the region rose.
The pan-European Dow Jones Stoxx 600 edged up 0.4% for the tenth rise in eleven sessions.
Other asset classes were showing signs of risk taking.
Oil futures rose 66 cents to $68.71 a barrel, and the euro rose against the U.S. dollar.
Yields on 10-year U.S. Treasury bonds rose 4 basis points to 3.70%. Yields move in the opposite direction to prices.
