Tech Earnings Ring In Cheer To Markets

(RTTNews) - The major U.S. index futures are pointing to a higher opening on Friday, with sentiment markedly upbeat in reaction to upbeat tech earnings. Hopes of stimulatory monetary policy environment and solid earnings from companies such as Microsoft, Google, Amazon and AT&T could provide a lift to the tech space and in turn the broader markets. Across the Atlantic, the mood is upbeat as well, with positive private sector activity data giving a thrust. The dollar is firmer and commodities are mostly higher, with the exception of crude oil.

U.S. stocks advanced solidly on Thursday, benefiting from indications from the European Central Bank that further stimulus is likely in December. Markets also chose to focus on some positive U.S. corporate results.

The major averages opened higher and advanced steadily until the mid-session before showing a consolidation move. The Dow Industrials ended 320.55 points or 1.87 percent higher at 17,489, the S&P 500 Index closed 33.57 points or 1.66 percent higher at 2,053 and the Nasdaq Composite ended at 4,920, up 79.93 points or 1.65 percent.

Twenty-six of the thirty Dow components ended the session higher, while the remaining four stocks declined. McDonald's (MCD) and 3M Co. (MMM) rallied 8.12 percent and 4.12 percent, respectively following the release of their quarterly results. Exxon Mobil (XOM), Intel (INTC), DuPont (DD) and Boeing (BA) also rose sharply.

On the other hand, American Express (AXP) and UnitedHealth (UNH) moved notably to the downside, with the former reacting to disappointing quarterly results.

Among the sectors, airline, resource, semiconductor, computer hardware and financial stocks were among the best performers of the session.

On the economic front, jobless claims rose by 3,000 to 259,000 in the week ended October 17th, while economists expected a reading of 265,000.

The four-week average fell to 263,250 from 265,000, dipping to the lowest level since December 15th, 1973. Meanwhile, continuing claims calculated with a week's lag rose to 2.170 million in the week ended October 10th.

The National Association of Realtors reported that existing home sales jumped 4.7 percent to a seasonally adjusted annual rate of 5.55 million units in September compared to a 5.30 million-unit rate in August. Annually, existing home sales were 8.8 percent higher.

Single-family home sales rose 5.3 percent to a 4.93 million-unit rate, while condominium sales were little changed at 620,000. Housing inventories measured in terms of months of supply fell to 4.8 months from 5.1 months in August and 5.4 months in the year-ago period. The median sales price of an existing home was down 2.9 percent to $221,900.

A report released by the Conference Board showed that its leading economic indicators index fell 0.2 percent month-over-month in September, belying expectations for an unchanged reading. Building permits, manufacturing and stocks acted as drags on the index. Meanwhile, the coincident and lagging indexes rose 0.2 percent and 0.5 percent, respectively.

The Federal Housing Finance Agency's house price index rose 0.3 percent month-over-month in August, smaller than the estimated 0.5 percent increase. Annually, house prices climbed 5.5 percent.

Currency, Commodity Markets

Crude oil futures for December delivery are slipping $0.12 to $45.26 a barrel after rising $0.18 to $45.38 a barrel on Thursday. An ounce of gold is currently trading at $1,177.30, up $11.20 from the previous session's close of $1,166.10. On Thursday, gold fell $1.

On the currency front, the U.S. dollar is trading at 120.94 yen compared to the 120.69 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1035 compared to yesterday's $1.1109.

Asia

The major Asian averages ended higher, encouraged by the positive message relayed by the European Central Bank's monetary policy meeting. The Japanese market advanced notably amid the retreat by the yen.

The Nikkei 225 Index opened sharply higher and moved roughly sideways throughout the session. The index ended up 389.43 points or 2.11 percent at nearly a 2-month high of 18,825, as the yen weakened to above the 120 yen level against the dollar. A majority of stocks advanced in the session.

Australia's All Ordinaries Index also hovered above the unchanged line throughout the session before ending up 88.50 points or 1.67 percent at 5,388. The buying interest was broad based, with consumer, IT and utility stocks leading the gains.

China's Shanghai Composite Index ended at 3,412, up 43.69 points or 1.30 percent, and Hong Kong's Hang Seng Index closed 306.57 points or 1.34 percent higher at 23,152.

On the economic front, final estimates by Japan's Cabinet Office showed that the leading economic indicators index for Japan fell to 103.5 in August from 105 in July, in line with the flash estimate.

The results of a survey by Markit and Nikkei showed that growth in Japanese manufacturing activity accelerated in October. The manufacturing PMI rose to 52.5 from 51 in September, coming in above the 50.5 reading expected by economists.

Europe

The buying momentum European stocks picked up yesterday in reaction to the European Central Bank decision is being sustained, with the major averages in the region currently notably higher. The markets were also reacting to some domestic corporate earnings and private sector activity data.

In major corporate news, telecom equipment maker Ericsson (ERIC) reported higher third quarter profits, helped by cost cuts.

Swedish white goods giant Electrolux reported better than expected quarterly profit, thanks to favorable currency effect. Volvo's third quarter adjusted earnings per share also exceeded estimates.

Meanwhile, AP Moeller-Maersk lowered its full year earnings guidance, citing a weak shipping market.

On the economic front, Eurozone private sector growth unexpectedly strengthened in October to its fastest pace in two months, led by a surprise improvement in the service sector activity, preliminary figures from a Markit Economics survey showed.

The flash composite purchasing managers' index that represents both manufacturing and services rose to a two-month high of 54 from 53.6 in September. Economists had expected a score of 53.4.

The flash PMI for the services sector also climbed to a two-month high of 54.2 from 53.7 in September. Economists had forecast a score of 53.5. The flash PMI for the manufacturing sector held steady at 52, defying economists' prediction for a drop to 51.7.

U.S. Economic Reports

Markit is set to release the flash estimate of its U.S. manufacturing PMI for October at 9:45 am ET. Economists expect the manufacturing PMI to remain unchanged at 53.

Stocks in Focus

News Based Movers (Gainers)

Microsoft (MSFT) - Q1 Beat - Up 9.64% in pre-market Alphabet (GOOGL) - Q1 EPS Beat; Rev. About in line- Up 10.22% in pre-market Amazon (AMZN) - Q3 Beat; Q4 Rev. Guidance In line - Up 9.59% in pre-market Juniper Networks (JNPR)- Q3 Beat; Q4 Guidance Upbeat; Up 4.13% in pre-market Verisign (VRSN) - Q3 EPS Beat NETGEAR (NTGR) - Q3 Beat; FY Guidance Upbeat; Up 10.09% in pre-market Qlogic's (QLGC) - Q2 EPS Beat, Rev. In Line; Q3 Guidance Upbeat E*TRADE (ETFC) - Q3 EPS Beat, Rev. Misses - Up 3.36% in pre-market AT&T (T)- Q3 EPS Beat, Rev. Misses, FY EPS Guidance Positive - Up 2.15% in pre-market BJ Restaurants (BJRI) - Q3 Beat - Up 11.93% in pre-market Whirlpool (WHR) - Up 4.5% in pre-market Procter & Gamble (PG) - Up 2.4% in pre-market Shire (SHPG)- Up 3.67% in pre-market

News Based Movers (Decliners)

Maxim Integrated (MXIM) - Q1 EPS in Line, Rev. Misses; Q2 Guidance Downbeat - Down 2.07% in pre-market Stratasys (SSYS) - Weak Prelim. Q2 Results - Down 18.95% in pre-market Stericycle (SRCL) -Q3 Results Miss - Down 14.05% in pre-market

Other Movers

Facebook (FB) - Up 3.14%