US STOCKS-Futures rise on earnings, European data

By Chuck Mikolajczak

NEW YORK, July 23 (BestGrowthStock) – U.S. stock index futures rose
on Friday, as another batch of solid corporate results,
including Microsoft and Ford, along with positive economic data
in Europe eased fears about the strength of a recovery.

* Microsoft Corp (MSFT.O: ) edged up 1.2 percent to $26.15 in
premarket trading after easily beating expectations with a 48
percent rise in quarterly profit. For details, see
[ID:nN21206486]

* Ford Motor Co (F.N: ) climbed 3 percent to $12.45 after the
automaker’s earnings topped estimates. [ID:nASA00JVY]

* “You are getting more on the revenue side and earnings
side to indicate a soft patch as opposed to double dip with the
exception of housing and jobs growth. So some of the fear that
was building into the market is coming off,” said Paul
Mendelsohn, chief investment strategist at Windham Financial
Services in Charlotte, Vermont.

* Solid economic data in Europe also helped boost futures,
as Britain’s economy grew almost twice as fast as expected in
the second quarter and German business sentiment leaped by a
record margin in July. [ID:nLDE66M0RN] and [ID:nLDE66M0JV]

* The data cheered investors ahead of the European banking
stress tests results due at noon EDT [1600 GMT]. In an effort
to ease fears over the potential impact of the euro zone debt
crisis on Europe’s banking system, regulators assessed how 91
banks would cope with another downturn. [ID:nLDE66L1XU]

* “Earnings are coming in very, very well and economic
data, at least overseas, came in strong. Now all we have to do
is get through the stress tests this afternoon and break
through this 1104, 1105 level on the S&P 500, and we could have
a nice rally on our hands,” added Mendelsohn. The S&P closed at
1093.67 on Thursday.

* S&P 500 futures (SPc1: ) gained 4.3 points and were above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) advanced
42 points, and Nasdaq 100 futures (NDc1: ) climbed 10 points.

* Dow component Verizon Communications Inc added 0.4
percent to $27.10 after posting quarterly earnings.
[ID:nASA00JW9]

* Diversified U.S. manufacturer Honeywell International Inc
(HON.N: ) recorded a 4 percent rise in profit and boosted its
forecast, citing recovering demand for industrial products. Its
shares were little changed. [ID:nN23131156]

* European shares edged up in Friday morning trade,
extending a rally into a fourth day, as corporate earnings were
well received and on cautious optimism over the bank stress
tests. [ID:nLDE66M0G1]

* Asian stocks rose Friday as strong profits from economic
bellwethers such as Caterpillar and UPS tempered concerns about
a global slowdown, while the euro steadied ahead of the bank
stress tests.

Investing Analysis

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

US STOCKS-Futures rise on earnings, European data