Stocks head toward higher open on strong profits from Apple, American Express, DuPont
NEW YORK -- U.S. stocks pointed toward a higher open Tuesday, with Wall Street growing more upbeat about corporate profits after solid results from such blue-chip names as Apple Inc., American Express Co. and DuPont Co.
After the market closed Monday, Apple surpassed analysts' expectations with a 67 percent jump in fiscal fourth-quarter profit on strong sales of Macintosh computers, iPods and iPhones. The report renewed confidence in the technology sector, which has outpaced the stock market this year but which also has tended to fall the hardest when investors sell off.
Dow components American Express, one of the largest credit card companies, and chemicals maker DuPont posted profit gains as well.
The market's credit worries are far from alleviated Ã¢â‚¬â€ť American Express did say delinquencies rose and that it boosted loan-loss provisions in preparation for further deterioration in credit. Wall Street will be paying close attention to what Treasury Secretary Henry Paulson and ex-Federal Reserve Chairman Alan Greenspan have to say about the financial markets and the economy in speeches Tuesday.
Dow futures rose 57, or 0.42 percent, to 13,667. Standard & Poor's 500 index futures lifted 6.00, or 0.40 percent, to 1,519.40. Nasdaq 100 index futures advanced 17.75, or 0.82 percent, to 2,189.50.
The stock market had a fitful recovery Monday after plunging Friday. Last week, Wall Street sold off as worries about the credit market's effect on the economy escalated, when several blue-chip companies offered dimmer-than-anticipated outlooks and S&P downgraded more mortgage-backed securities.
Crude oil futures for December delivery fell 25 cents to $85.77 a barrel in pre-opening trading on the New York Mercantile Exchange.
The dollar fell against most other major currencies. Gold rose.
Stock markets overseas advanced broadly, catching the Dow's renewed optimism.
In Asian trading, Japan's Nikkei stock average inched up 0.07 percent, while Hong Kong's Hang Seng index soared 3.54 percent. In European trading, Britain's FTSE 100 rose 1.12 percent, Germany's DAX index rose 0.58 percent, and France's CAC-40 rose 0.85 percent.