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U.S. stock futures rise as Apple surges; Dow futures up 0.25%

Published 04/21/2011, 08:40 AM
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Investing.com – U.S. stock futures pointed to a higher open on Thursday, as a flurry of robust corporate earnings buoyed market sentiment, while shares in consumer electronics giant Apple surged ahead of the open.

Dow Jones Industrial Average futures pointed a gain of 0.25%, the S&P 500 futures climbed 0.35%, while Nasdaq 100 futures indicated an increase of 0.75%.

Stock index futures shed some gains after disappointing government data on initial jobless claims, which fell less-than-expected to 403K, short of an expected decline to 390K.

Meanwhile, Apple saw shares rally 4.5% in pre-market trade after it reported a 95% jump in first quarter earnings after Wednesday’s closing bell, driven by surging sales of iPhones and iPads. Revenue rose 83% to USD24.67 billion, blowing past expectations for revenue of USD23.3 billion.

The world's largest producer of mobile-phone chips Qualcomm saw shares soar 3.7% after it said second quarter profit rose 22.5% to USD999 million. Revenue climbed 30% to USD3.9 billion, citing booming demand for smartphones.

Industrial conglomerate General Electric advanced 3.1% after it reported first quarter net profit climbed 43% from a year earlier. The company lifted its full-year earnings outlook and raised its quarterly dividend by 1%. "GE has emerged from the recession a stronger, more competitive company," chief executive Jeff Immelt said in a statement.

The third largest U.S. chemicals manufacturer DuPont climbed 2.95% after it said first quarter profit rose 27% due to strong sales of electronic and solar materials. Revenue increased 12% to USD10.06 billion, beating expectations for revenue of USD9.31 billion.   

Morgan Stanley saw shares gain 2.2% after it reported first quarter profit fell less-than-expected. The second largest U.S. investment bank said profit fell 45% to USD968 million, higher than the expected decline to USD7.88 billion.

Other stocks in focus included fast-food giant McDonald’s, wireless carrier Verizon and the New York Times, which were all expected to release earnings later in the day. 

In total, 45 S&P 500 companies are scheduled to release results today.

Across the Atlantic, European stock markets advanced for a third day, boosted by upbeat earnings from chemical giant Akzo Nobel. The EURO STOXX 50 jumped 0.75%, France’s CAC 40 rose 0.6%, Germany's DAX climbed 0.8%, while Britain's FTSE 100 edged 0.1% higher.  

During the Asian trading session, Japan’s Nikkei 225 Index closed 0.8% higher as technology stocks were cheered by Apple’s results and as commodity-linked shares rose on a rally in crude oil and gold prices.

Later in the day, the U.S. was to release a report on house prices, while the Federal Reserve Bank of Philadelphia was to publish an index of manufacturing activity.

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