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US Futures Rise on Better-Than-Expected Earnings

U.S. stock index futures were higher Tuesday, a day after major averages saw their biggest drop this year, supported by a batch of upbeat earnings results and a better-than-expected March housing report. Investors were also heartened as gold, oil, and other commodities pared back some of this week's steep declines.

Earnings season kicked into high gear Tuesday, following a slew of upbeat earnings reports from heavyweights Goldman Sachs, Coca-Cola, and Johnson & Johnson. (Get Full Earnings Coverage Here)

But Target slipped after the retailer warned that first-quarter adjusted profit will come in slightly below Street estimates on weaker-than-expected sales of seasonal and weather-sensitive items.

Intel, Yahoo, and CSX are among notable companies slated to post results after closing bell. (Read More: Tech Earnings: What to Expect from Yahoo and Intel)

On the economic front, new home sales jumped to their highest level since 2008, gaining 7.0 percent in March to a 1,036-000-unit annual rate, according to the Commerce Department, and trumping expectations of a 930,000-unit rate.

Consumer price index slipped 0.2 percent in March for the first time in four months as the cost of gasoline declined, giving room for the Federal Reserve to maintain its easy money policy. Economists polled by Reuters had expected a flat reading.

And industrial production rose 0.4 percent in March, according to the Federal Reserve, topping expectations for a gain of 0.2 percent.

Disappointing gross domestic product data from China on Monday sparked a sell-off in commodities, which fed through to global equity markets. Gold prices plunged more than 9 percent and U.S. stock indexes posted their biggest one-day losses of the year.

"The collapse in the gold market—the biggest fall in some 30 years—has taken the shine off risky assets, plus weaker-than-expected U.S. data coming on top of weaker-than-expected Chinese data has called into question the global economic recovery ... adding to that the apparent terrorist bombing of the Boston Marathon, and the markets have entered a serious 'risk off' mode," Marshall Gittler, the head of global foreign-exchange trategy at IronFX, said in a note on Tuesday.

(Read More: Markets Will Look for Answers on Boston Blasts)

In early trade on Tuesday, shares in Asia and Europe pared back some losses. In Europe, a decline in stocks sparked a buying opportunity, which moved the German DAX off session lows.

Nonetheless, analysts said Monday's sell-off could be the start of a sizable correction in stocks, which have enjoyed strong gains for several months now.

"The market has been ready for a sizable correction for some time now," said Ben Lichtenstein, president at Tradersaudio.com. "Everyone said a correction was due, it was just a question of when."

—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

Coming Up This Week:

TUESDAY: Fed Gov. Duke speaks, Minneapolis Fed's Kocherlakota speaks, Moody's annual mtg, US Bancorp shareholder mtg; Earnings from Intel, CSX, Yahoo
WEDNESDAY: Mortgage applications, St. Louis Fed's Bullard speaks, oil inventories, Boston Fed's Rosengren speaks, Beige Book, Treasury Secretary Lew speaks, Carnival Corp. annual mtg, Gap investor mtg; Earnings from Abbott Labs, Bank of America, Bank of NY Mellon, American Express, Ebay, Noble, Sandisk
THURSDAY: Jobless claims, Minneapolis Fed's Kocherlakota speaks, Philadelphia Fed survey, Richmond Fed's Lacker speaks, leading indicators, natural gas inventories Fed Gov. Raskin speaks, Fed balance sheet/money supply, Ebay shareholders mtg, Texas Instruments annual mtg, G20 finance ministers mtg; Earnings from Morgan Stanley, PepsiCo, Philip Morris, United Health, Verizon, Nokia, Peabody Energy, Google, IBM, Microsoft, Capital One, Chipotle, E-Trade Financial
FRIDAY: Fed Gov. Stein speaks, IMF spring mtg; Earnings from GE, McDonald's, Schlumberger, Baker Huges, Honeywell

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