(Reuters) – US equity index futures were expected to rise on Tuesday after undergoing a series of volatile trading sessions as investors commented on the recent salvo in US-China's trade and earnings reports of blue-chip companies pondered.
A trader works on the New York Stock Exchange (NYSE) floor in New York, USA, October 29, 2018. REUTERS / Brendan McDermid
President Donald Trump said he believed "a lot" of trade could be made with China, but warned that he had new billions worth of dollars ready if a deal was not possible.
The comments came after a Bloomberg report that Washington was preparing to announce tariffs on all remaining Chinese imports by early December if talks between Trump and his Chinese counterpart Xi Jinping fail next month.
The report unleashed a wild ride on Wall Street on Monday. The blue chip Dow Industrials .DJI fell more than 900 points from its high and the benchmark index S & P 500 .SPX closed within a short period in which the correction area was confirmed.
"Futures have risen because of perceived optimism about Trump's comment, but we have a profitable earnings week, so there is an expectation of continued, erratic trading with no clear direction," said Andre Bakhos, managing director of New Vines Capital LLC, Bernardsville. New Jersey.
"At the moment, the market is hungry for stability and some soothing activities that are temporarily offered to trading through the latest positive news."
Tariffs and rising costs were some of the factors that led to disappointing forecasts for large industrial companies, chip manufacturers and other sectors, adding concerns about a slowdown in corporate growth to fears of faltering global growth.
Coca-Cola Co (KO.N) Equities rose 0.1% before-hours after outperforming quarterly sales estimates as more consumers resorted to new versions of its sugar-free soft drinks and carbonated waters. PepsiCo Inc. (PEP.O) rose by 0.4 percent.
But, Pfizer Inc (PFE.N) dropped 3.4 percent after cutting the upper end of its full-year sales guidance, pointing to a stronger dollar and lower revenues from the sterile injections business.
At 8:41 CET, Dow e-minis 1YMc1 had risen 74 points or 0.3 percent. S & P 500 e-minis ESc1 rose 10 points or 0.38 percent and Nasdaq 100 e-minis NQc1 were 11.75 points, or 0.17 percent.
Although S & P 500 results have pushed third-quarter earnings projections up from 21.8 percent over the past eleven days to 25.3 percent, fears over the extent of a slowdown in earnings growth remain the next one, according to the refining data Year exist.
Under Armor Inc. (UAA.N) jumped 9.7 percent after the sporting goods maker raised its full-year earnings guidance and delivered better quarterly results than expected, helped by higher overseas sales and lower spending.
Bigger rival Nike Inc (NKE.N.) also increased by 0.4 percent.
In an upturn for the besieged chip industry, chip gear manufacturer KLA-Tencor Corp. (KLAC.O) rose by 5.7 percent after strong results and forecasts.
General Electric Co (GENE.) dropped its prior-year trading profits by 3.3 percent after the US Securities and Exchange Commission extended its GE accounts to include goodwill impairment of $ 22.8 billion from its Power business.
Reporting by Shreyashi Sanyal in Bangalore; Edited by Bernard Orr