Stock futures were higher this morning as investors saw better-than-expected earnings reports from key companies.
Before the opening bell, futures contracts on the Dow Jones Industrial Average (INDEXDJX:.DJI) added 0.51% to 13,427.00, S&P 500 (INDEXSP:.INX) futures were up 0.56% at 1,443.60, and Nasdaq (INDEXNASDAQ:.IXIC) rose 0.57% to 2,746.75.
Today, earnings for banks and tech companies will be in focus.
Goldman Sachs (NYSE:GS) reported earnings per share of $2.85, beating estimates by $0.66. The investment bank also increased its dividend to $0.50 from $0.46. Investment banking revenues rose 49% from last year's third quarter.
PNC Financial (NYSE: PNC) also beat estimates with EPS of $1.64, despite an unexpected drop in revenue. Citigroup (NYSE:C) CEO Vikram Pandit announced that he will be stepping down; he will be replaced by Michael Corbat. Pandit steered the bank through the 2008 financial crisis and the subsequent government rescue. While shares of Citigroup were up after it beat on earnings yesterday, the stock fell 3% after Pandit's announcement.
(NASDAQ:INTC) and IBM
(NYSE:IBM) will report earnings after the bell. Intel earnings are expected to fall to $0.50 from $0.46 last year. Intel is playing catch-up in the mobile space, having just released its first US smartphone. IBM is expected to book EPS of $3.61, up from $3.28 a year ago.
Amazon (NASDAQ:AMZN) shares rose slightly after announcing that it is hiring 50,000 holiday-season workers.
On the economic front, rising energy costs pushed inflation up more than expected. The US Consumer Price Index increased by 0.6% in September. Excluding food and energy costs, CPI increased by just 0.1%.
Data from the Federal Reserve will probably show that industrial production in the United States rose 0.2% in September after falling 1.2% in August. The industrial production report will be released at 9:15 a.m.
In Europe, key indicators were mixed today. Germany's ZEW Survey fell to 10.0 from 12.6 this month, missing estimates. The European Union's consumer prices climbed 0.7% in September, a slightly narrower increase than forecast. The region's trade surplus unexpectedly rose to 9.9 billion euros in a record high for August. The contribution of exports could help third quarter GDP for some countries, but the other side of the coin is decreased consumer demand.
No positions in stocks mentioned.
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