Global stocks looked set to rebound modestly on Tuesday following a generally upbeat round of second quarter earnings from a slew of blue-chip U.S. companies.
U.S. stock index futures were higher with about an hour before markets open, suggesting that stocks will rise. Futures for the Dow Jones industrial average were up 70 points or 0.6 per cent. Futures for the broader S&P 500 were up 8 points or 0.6 per cent. Both indexes fell on Monday over lingering concerns about the European debt crisis and the ongoing debate over extending the U.S. debt ceiling.
In Europe, Britain's FTSE 100 was up 0.5 per cent and Germany's DAX index was up 1.2 per cent in afternoon trading. In Asia, Japan's Nikkei 225 fell 0.9 per cent in overnight trading.
International Business Machines Corp. rose 1.7 per cent in premarket activity after it reported a 12 per cent gain in its second quarter revenue and raised its full-year outlook on Monday. Its quarterly earnings came in at $3.7-billion (U.S.) or $3 a share, topping expectations among analysts.
Coca-Cola Co. rose 0.5 per cent in premarket activity and Johnson & Johnson rose 0.2 per cent after they reported their respective quarterly results. However, Bank of America Corp. slipped 0.3 per cent after it slipped to a quarterly loss of $4.8-billion or 90 cents a share, due largely to mortgage-related charges. Revenue fell 54 per cent, but beat expectations.
At the same time, Goldman Sachs Group Inc. fell 2.9 per cent after its revenues fell 18 per cent during the second quarter. However, its earnings beat expectations, rising 77 per cent over last year, to $1.1-billion or $1.85.
In Canada, all eyes will be on the central bank when it releases its decision on interest rates. While just about everyone expects the Bank of Canada to leave its key rate unchanged, at 1 per cent, the tone of the bank's message is going to be given a lot of attention. The bank is in a sticky position right now, trying to balance strong employment gains and rising inflation against a global backdrop of sluggish economic growth and big concerns about the debt crisis in Europe.