* Abbott up after raising full-year profit forecast
* AmEx, Travelers fall after posting drop in profit
* Weekly jobless claims fall to five-month low
* Visa, Microsoft, eBay to report after closing bell
* Futures up: Dow 25 pts, S&P 4.5 pts, Nasdaq 16.25 pts
(Adds details, comment, updates prices)
By Tanya Agrawal
July 20 (Reuters) – U.S. stock indexes looked set to open
higher on Thursday, a day after all three major indexes closed
at record highs, as investors waited for earnings to sustain the
rally in technology stocks.
The S&P 500 tech sector, which has been the best
performing sector this year, broke its previous record closing
high that had held since March 2000 in the midst of the dot-com
and Y2K tech stocks bubble.
Microsoft, which will report results after the
market close, was up 0.4 percent in premarket trading. Other
major tech names such as Alphabet, Facebook and
Amazon are due to report results next week.
Investors have been pouring money into the technology sector
in their search for growth areas in an otherwise low-growth
environment, looking for sectors that are not affected by any
major policy gridlock.
Quarterly earnings will continue to be the main focus with
analysts estimating an 8.7 percent rise in second-quarter
earnings and a 4.6 percent increase in revenue for the S&P 500
companies from a year earlier, according to Thomson Reuters
Visa, eBay, Capital One Financial are
due to report results after the closing bell.
“The surge in stock prices is showing no signs of letting up
as corporate America’s earnings power continue to expand,” said
Peter Cardillo, chief market economist at First Standard
“The mostly better-than-expected results are lifting
investors’ confidence – a basic fundamental positive for
Dow e-minis were up 25 points, or 0.12 percent, with
15,185 contracts changing hands at 8:33 a.m. ET (1233 GMT).
S&P 500 e-minis were up 4.5 points, or 0.18 percent,
with 114,692 contracts traded.
Nasdaq 100 e-minis were up 16.25 points, or 0.27
percent, on volume of 19,571 contracts.
Economic data showed weekly jobless claims fell to a
five-month low. Claims fell to 233,000, below the 245,000
expected by economists polled by Reuters.
Cigarette maker Philip Morris was down 3 percent
after its quarterly profit came in below expectations.
American Express fell 1.7 percent after the card
company’s profit declined 33 percent in the second quarter.
Abbott Laboratories rose 1.1 percent after the
healthcare company raised its full-year profit forecast.
Property and casualty insurer Travelers was down 1.9
percent after reporting a drop in quarterly profit.
T-Mobile was up 3.7 percent after the wireless
carrier’s quarterly results topped analysts’ estimates.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)