US Stock Futures Point To Mixed Open Following Mild China Inflation Data, Ahead Of Strong Expectations From Corporates Earnings Reports

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April 9, 2013 7:22 PM EST


U.S. stock index futures point to a mixed opening Tuesday as a promising Chinese inflation data lifted investor sentiment, while a buoyant report from the aluminum major Alcoa, marked the beginning of the U.S. corporate earnings season.

The futures on the Standard & Poor's 500 Index rose 0.21 percent to 1,562.40. Futures on the Nasdaq 100 index gained 0.32 percent to 2,790.00. However, the futures for Dow Jones industrial average fell 0.06 percent to 14,554.

Investors are also focusing on the U.S. corporate earnings season that commenced after the closing bell Monday, with the aluminum producer, Alcoa Inc. (NYSE:AA) reporting its first quarter earnings. Alcoa Inc, viewed as a bellwether for the materials sector reported a nearly 60 percent jump in quarterly profits, but its revenue missed analysts’ forecasts. 

The company’s adjusted earnings per share were $0.11 on revenues of $5.83 billion against $0.10 per share reported in the same period last year, while the company’s net income was $149 million, or $0.13 per a share, from $94 million, or $0.09 reported a year earlier. 

Analysts had estimated the aluminum producer to report a profit of $0.08 per share on revenues of $5.88 billion.

Investors are expected to closely watch the corporate earnings reports as several companies including Century Bancorp Inc. (NASDAQ:CNBKA), Harvest Natural Resources Inc. (NYSE:HNR), The Phoenix Companies Inc. (NYSE:PNX), PriceSmart Inc. (NASDAQ:PSMT), SeaChange International (NASDAQ:SEAC), Telestone Technologies Corporation (NASDAQ:TSTC) and Zep Inc. (NYSE:ZEP) are reporting quarterly results Tuesday.

U.S. stocks trimmed their morning losses and closed higher Monday, rebounding from one of their lowest weekly levels in the year as the investor sentiment was buoyed by strong start of the U.S earnings season.

The Dow Jones Industrial Average rallied 48.23 points or 0.33 percent to close at 14,613.48. The broad-based S&P 500 gained 9.79 points or 0.63 percent to 1,563.07, while the Nasdaq Composite Index was up 18.39 points or 0.57 percent to close at 3,222.25.

A positive inflation data from China eased investors’ concerns that Chinese policy makers might start tightening the monetary policy ending the monetary stimulus for economic recovery. China's annual consumer inflation eased markedly to 2.1 percent in March from February's 3.2 percent, while producer price deflation deepened, the government announced Tuesday morning. Food price inflation, which had surged to 6 per cent year-on-year in February, fell to 2.7 per cent.

European markets rose in the opening minutes of trade as a strong start to the U.S. earnings season and a positive Chinese inflation data boosted investor sentiment. European investors are also looking ahead to the U.K. industrial production and trade figures for February that will be released later in the day.

The UK's FTSE 100 gained 0.6 percent in the first few hours, while France's CAC-40 was up 7 percent. The Germany's DAX Index was up 0.5 percent.

Earlier in Asia, several resource-sector stocks got a boost from the solid first quarter results reported by the U.S. aluminum group Alcoa. The Japanese Nikkei remained stable for a fifth-straight day on the back of a weak yen, which continued to depreciate following Bank of Japan's announcements of aggressive monetary easing measures.

The Nikkei was little changed at 13192.35 while closing, after crossing the 13,000-mark Friday for the first time since August 2008.

South Korea's KOSPI edged up 0.11 percent to 1920.74, while Hong Kong's Hang Seng rose 0.70 percent to 21870.34. In China, the Shanghai Composite index gained 0.64 percent to 2225.77.


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