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US STOCKS-Futures rise as third-quarter earnings start on strong note

Published 15/10/2019, 12:38
© Reuters.  US STOCKS-Futures rise as third-quarter earnings start on strong note
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures up: Dow 0.38%, S&P 0.34%, Nasdaq 0.31%

By Sagarika Jaisinghani

Oct 15 (Reuters) - U.S. stock index futures rose on Tuesday,

as the third-quarter earnings season got off to an upbeat start

with robust reports from JPMorgan Chase, UnitedHealth and

Johnson & Johnson.

JPMorgan Chase & Co JPM.N gained 1.9% after beating Wall

Street estimates for quarterly profit by a wide margin,

underpinned by strength in bond trading, underwriting and home

lending revenue. But Goldman Sachs .GS.N slipped 0.9% as it reported a 27%

slump in quarterly profit, hit by lower fees from advising on

deals and weakness in underwriting. L3N26Z32P

Collectively, banks are expected to report a 1.2% decline in

earnings, their first year-on-year drop in three, due in part to

low interest rates and trade tensions. Wells Fargo WFC.N and Citigroup C.N are also due to

report on Tuesday, followed by Bank of America BAC.N and

Morgan Stanley MS.N later this week.

Shares of UnitedHealth Group Inc UNH.N and Johnson &

Johnson JNJ.N rose 2.9% and 1.7%, respectively. The healthcare

companies reported strong quarterly results and raised their

full-year profit forecasts. L3N2702L4 L3N2702TJ

The earnings reports will indicate the fallout from a

prolonged U.S.-China trade war on U.S. companies. The

tit-for-tat tariff moves have already hit domestic

manufacturing, dented business sentiment and rankled financial

markets.

S&P 500 companies were set to report their weakest quarterly

performance in about three years for the September quarter, with

industrial companies among those most at risk from the trade

dispute. President Donald Trump announced a partial trade deal with

China on Friday, but concerns linger as no agreement has been

signed yet and most tariffs on Chinese imports remain in effect.

The S&P 500 and Dow Jones indexes, which gained nearly 2%

last month, are off about 0.4% in October. The benchmark index

is now more than 2% away from its record high after coming

within striking distance in September.

At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 102 points, or

0.38%. S&P 500 e-minis EScv1 were up 10 points, or 0.34% and

Nasdaq 100 e-minis NQcv1 were up 24.25 points, or 0.31%.

Other companies reporting results this week include Netflix

Inc NFLX.O , Abbott Laboratories ABT.N and Union Pacific

UNP.N .

Shares of BlackRock Inc BLK.N , the world's biggest asset

manager, rose slightly after its quarterly profit beat analysts'

estimates. Home-furnishing retailer Bed Bath & Beyond Inc BBBY.O was

up 4% after Keybanc upgraded the stock to "overweight".

L3N2702TW

Shares of mobile game developer Glu Mobile GLUU.O jumped

9% as it is set to replace SolarEdge Technologies SEDG.O in

the S&P SmallCap 600. On a sour note, U.S. advertising company Omnicom Group Inc

OMC.N dropped 0.9% after falling short of estimates for

quarterly revenue. L3N2702U1

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