Stocks were set to build on yesterday's all-time high this morning as investors take in corporate earnings and look forward to Apple's ( AAPL ) latest results.
Apple will post earnings after the bell today. Analysts are looking for a profit of $7.03 per share for the past quarter, down from $9.32 per share a year ago. Revenue is projected to be flat. Apple's competitors and proxies on the supply chain have been somewhat soft in the past quarter.
Netflix ( NFLX ) declined by 3.4% after reporting smaller-than-expected growth in subscribers. The streaming service added 630,000 new subscribers, missing estimates by 70,000. Wall Street analysts thought that the new season of Arrested Development might spark subscriptions. Earnings per share were $0.49, beating expectations of $0.49.
Global economic bellwether UPS ( UPS ) saw profit fall in the last quarter. Earnings per share fell to $1.13 from $1.15 a year ago, meeting expectations. The shipping company expects profit to grow in the second half.
E.I. DuPont de Nemours ( DD ), a Dow (INDEXDJX:.DJI) component, reported $1.28 per share of profit, down from $1.50 a year ago. The chemical company still beat expectations by a penny.
Before the opening bell, stocks are higher amidst the corporate earnings reports. Dow futures are up 0.27% to 15,533 while futures contracts on the S&P 500 (INDEXSP:.INX) rose 0.20% to 1,693.70, and Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.25% to 3,055.00. The only major datapoint on today's economic calendar is the Federal Housing Finance Agency's home price index for May, which is likely to show a 0.8% increase in prices.
Asia ended Tuesday higher. Chinese Premier Li Keqiang reassured business leaders that the lowest growth the government projects is 7%. In the second quarter, growth slowed to 7.5%. Li's optimism helped the Shanghai CSI 300 Index (SHA:000 300) rise 2.89%, a six-week high. Japan's Cabinet Office also upgraded its economic outlook and said that deflation is easing.
European shares were also higher due to sunny forecasts from governments. French finance minister Pierre Moscovici told the media that the country's recession is already over. He cited estimates from the Bank of France and an upbeat report on industrial morale from INSEE to claim that French GDP would rise 0.2% in the second quarter after declining by as much in the first. The Bank of Spain also said that its recession was less severe in the quarter ending in June. Spain contracted 0.1% after declining 0.5% in the first three months of the year.
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