Stock futures rise as Alphabet gains, lifts FAANG stocks

(Reuters) - U.S. stock index futures rose on Tuesday, as Alphabet’s strong results lifted other high-growth technology companies, adding to a robust earnings season in the backdrop of a U.S.-China trade war and a strengthening dollar.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2018. REUTERS/Brendan McDermid

Shares of Google-parent Alphabet Googol, part of the so-called FAANG stocks, jumped 4.6 percent in premarket trading and were set to scale a record high after the company reported better-than-expected quarterly revenue and profit as expenses from its Google search business grew more slowly.

Other FAANG stocks also rose. Facebook (FB.O) climbed 1.9 percent, while Amazon (AMZN.O) gained 1.4 percent. Twitter (TWTR.N) gained 0.9 percent.

Eli Lilly (LLY.N) jumped 6.6 percent after the company said it would take its animal health unit public and posted a better-than-expected quarterly profit.

Biogen (BIIB.O) rose 4.7 percent after the drugmaker reported a better-than-expected quarterly profit and raised its forecast for 2018 adjusted earnings.

At 6:58 a.m. ET, Dow e-minis 1YMc1 were up 100 points, or 0.4 percent. S&P 500 e-minis ESc1 were up 6.25 points, or 0.22 percent and Nasdaq 100 e-minis NQc1 were up 12.75 points, or 0.17 percent.

The earnings season has been robust to date, with 82 percent of the 90 S&P 500 companies that have posted results topping profit estimates, according to Thomson Reuters I/B/E/S.

Analysts estimate of profit growth have risen to about 22 percent for the second quarter, up from 20.7 percent at the start of the month.

Investors will continue to focus on the impact of a strong dollar and the trade dispute between the United States and China on future earnings. The world’s two largest economies have already imposed tariffs on $34 billion worth of each other’s imports.

Whirlpool (WHR.N) tumbled 9.9 percent, in low volumes, after reporting weak quarterly results and cutting its full-year forecasts, blaming lower volumes and higher raw material costs, especially in EMEA.

Harley-Davidson (HOG.N), at the center of the brewing trade war between the United States and the European Union, rose 1.1 percent in low volumes after its profit topped estimates as sales of bikes overseas edged up, although it warned new EU tariffs would squeeze margins.

Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila

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