U.S. stock market set to extend record rally as investors await second-quarter earnings - MarketWatch

• Citi shares rise premarket after the bank delivers better-than-expected results
• China GDP data disappoints but markets shake off bad news to rise
• Anheuser calls off $10 billion Asian IPO

U.S. stocks on Monday were poised to climb modestly, building on their record finishes from last week, as a wave of second-quarter earnings await.

How are the major benchmarks performing?

Futures for the Dow Jones Industrial Average YMU19, +0.18% were up 51 points, or 0.2%, at 27,360, those for S&P 500 ESU19, +0.19% climbed 4.85 points, or 0.2%, at 3,020.25, while Nasdaq 100 futures NQU19, +0.23% rose 11.75 points to reach 7,971.25, a gain of 0.1%.

On Friday, the Dow DJIA, +0.90%  gained 244.02 points, or 0.90%, at 27,332.10, while the S&P 500 index SPX, +0.46%  added 13.83 points, or 0.5%, at 3,013.75. The Nasdaq Composite index COMP, +0.59% closed 48.10 points higher at 8,244.14, a gain of 0.6%.

Read: The Dow components that drove the blue-chip stock index to 27,000

Also see: All of the important Dow milestones in one chart

What’s driving the market?

Citigroup Inc. C, +0.22% said its second-quarter income rose 7% from a year ago, with profit at $4.8 billion, up from $4.49 billion a year ago and earnings come in at a better-than-expected $1.95, compared against consensus analysts’ expectations for $1.81 a share. Citi’s shares were up 0.8% in premarket action Monday, on track to open at the highest price seen during regular-session hours since October 2018.

The results also showed revenue came in at a hotter-than-estimated, $18.76 billion, up 2% from $18.47 billion a year ago and better than the $18.5 billion projected by Refintiv, and are likely to give markets some hope for a upbeat second-quarter results, with investors keenly watching for signs of the impact of Sino-American tariff wars, a regime of ultralow interest rates and a domestic slowdown buffeting global economies, washing up in some areas of the U.S.

In Asia, Chinese stocks edged higher on a mixed bag of data that showed that the world’s second-largest economy expanded at the slowest pace in 27 years, though measures of industrial production retail sales came in better than expected.

China gross domestic product, or GDP, in the second quarter slowed to 6.2%, marking its slowest pace since 1992 — though mostly matching expectations — from a reading of 6.4% in the first quarter. Industrial production in the country accelerated to 6.3% from 5.0%, ahead of the 5.2% consensus.

President Donald Trump on Monday took credit for a slowdown in the Chinese economy that he says will lead to more favorable trading terms with the world’s second-largest economy. Over two tweets, Trump said China wants to make a trade deal and insisted that U.S. taxpayers aren’t paying tariffs.

Markets have been mostly rising on the promise of easy-money policies from the likes of the Federal Reserve and the European Central Bank, with some investors speculating that anticipation a further round of monetary-policy stimulus from Beijing’s central bank has also helped to soften the impact of a relatively weak GDP print.

Looking ahead, market participants were looking for a July reading of the Empire State manufacturing survey, which will be released at 8:30 a.m. Eastern. Meanwhile, New York Federal Reserve President John Williams will speak at 8:50 a.m.

See: Banks should shine among S&P 500 stocks this earnings seaso n

Check out: This stock-market canary has keeled over

Read: With trade tensions escalating, here are 5 things to know about this earnings season

Which stocks are in focus?

Gilead Sciences Inc. GILD, +0.11%  said would invest $5.1 billion to raise its stake in Belgian biotechnology company Galapagos N.V. ADR GLPG, +2.72% Shares of Gilead were up 0.4% in the premarket.

Shares of Anheuser-Busch InBev SAwere in focus after the seller of Budweiser BUD, -3.03% called off what would have been the largest initial public offering of the year, saying it wouldn’t proceed with the nearly $10 billion listing of its Asian business. Anheuser’s stock gained 1.1% before the bell.

How are other markets trading?

The yield on the 10-year Treasury note TMUBMUSD10Y, -0.58% was 2.12%.

In Asia, stocks finished higher, with the China CSI 300  000300, +0.41% adding 0.4%, Japan’s Nikkei 225 NIK, +0.20% rising 0.2% and Hong Kong’s Hang Seng Index HSI, +0.29% advancing 0.2%. European shares were marginally higher, with the Stoxx Europe 600 SXXP, +0.31% edging 0.1% higher.

In commodities markets, crude-oil prices CLQ19, +0.32%  were climbing modestly, up 0.3% at $60.40 a barrel, along with gold prices GCQ19, +0.16% rising 0.3% at $1,416.40 an ounce.

The U.S. dollar DXY, +0.05%  was trading flat at 96.809 in early Monday dealings, as measured by the ICE U.S. Dollar Index.

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https://www.marketwatch.com/story/us-stock-market-set-to-extend-record-rally-as-investors-await-second-quarter-earnings-2019-07-15

2019-07-15 12:27:00Z
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