U.S. stock futures extended gains on Tuesday, pointing to a higher Wall Street open, on the heels of stronger-than-expected earnings from technology bellwethers International Business Machines Corp. and Texas Instruments Inc. as well as lower oil prices. IBM, a Dow component, rose 3.6 percent in trading before the bell, extending post-market gains from Monday afternoon that were sparked by its confident forecast.
EMC Corp. , the top maker of corporate data storage equipment, reported quarterly profit jumped, while shares of Texas Instruments, the largest maker of chips for cellular phones, rose before the bell a day after posting strong quarterly earnings. No. 2 automaker Ford Motor Co. reported a higher-than-expected quarterly profit and Altria Group Inc. , whose products range from Marlboro cigarettes to Kraft macaroni and cheese, said its quarterly profit rose. S&P 500 futures were up 4.7 points, 4.3 points above fair value accounting for dividends, interest rates and time to expiration on the contract, indicating the market would open higher. Dow Jones industrial index futures rose 45 points, while Nasdaq 100 futures gained 11 points. "We're looking higher across the board, which is a combination of two factors. The encouraging news from IBM and the fact that oil prices are lower," said Peter Cardillo, chief market analyst and chief strategist at SW Bach and Co. "There's a lot of goodwill out there."
NYMEX crude oil futures slipped for a second day running as investors considered the prospect of slower growth due to higher energy costs. World demand for oil is expected to moderate a little in 2005 as higher costs take their toll and China's economic expansion eases, a survey found. U.S. light crude was off 62 cents at $53.05 a barrel following a $1.26 slide on Monday. Prices are down nearly 4 percent in two days, easing investors' concern that high energy prices will cut into corporate profits. The U.S. consumer price index for September is due at 8:30 a.m. (1230 GMT) and should provide evidence whether surging energy costs have stoked inflationary pressures. Economists surveyed by forecast an increase of 0.2 percent from the previous month. Also on Tuesday Federal Reserve Board Chairman Alan Greenspan will speak at 10 a.m. (1400 GMT) to the America's Community Bankers Annual Meeting.////