Caterpillar jumps on strong Q2 results, raises forecast
Caterpillar's shares jumped 2.3 percent in premarket trading after it reported a second-quarter profit that beat estimates and the heavy equipment maker also raised its full-year profit outlook.
U.S. stocks were set to open higher on Monday after a strong earnings report from Caterpillar, a bellwether for global economic activity, restored optimism that the ongoing trade war would not hit corporate results more than feared.
"The market has had a heck of a run over the last week or so and with only 13 S&P components reporting today, people are expecting the day to be quieter," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
"There will be eyes on industrials due to Caterpillar's results and people will be keeping an eye on FAANG stocks for any sign of weakness."
The technology index fell 1.2 percent last week after underwhelming forecasts from Facebook, Intel and Twitter threw up questions about the growth prospects of a sector whose surge has propelled the stock market to record highs.
At 8:57 a.m. ET, Dow e-minis were up 33 points, or 0.13 percent. S&P 500 e-minis were up 0.5 points, or 0.02 percent and Nasdaq 100 e-minis were down 3.75 points, or 0.05 percent.
Still, with the earnings season in full swing, expectations for second-quarter results remain robust.
The Federal Reserve meets on Tuesday and Wednesday and is expected to keep rates unchanged and reaffirm outlook for further rate hikes. The market has almost fully priced in a September hike and is leaning towards a further move before the end of the year.
American Express fell 1.4 percent after the Wall Street Journal reported the company raised currency conversion rates for its business clients without notifying its customers.
Tyson Foods fell 4.7 percent, after the company cut its full-year profit forecast, saying uncertain trade policies and higher tariffs hurt domestic and export prices, specifically for chicken and pork.
The warning also weighed on the shares of Hormel Foods, Sanderson Farms and Pilgrim's Pride, which fell between 0.3 and 1.8 percent.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)