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Jul 22, 2016

U.S. Stock Market Future Indications Update, by MarketWatch - July 22, 2016: Dow Industrials Poised to Rebound After Ending Week Streak

Mark DeCambre, Carla Mozee

U.S. stock futures pointed to a higher open Friday, putting the three main indexes in position to register a fourth straight weekly gain after the Dow snapped a win streak in the prior session.
Investors will pore over a heavy round of corporate earnings and a preliminary reading of manufacturing due later Friday morning, which will help set the tone for trading.
Dow Jones Industrial Average futures YMU6, +0.10% rose 21 points, or 0.1%, to 18,457.00, while S&P 500 futures ESU6, +0.13% advanced 3.35 points, or 0.2%, to 2,161. Nasdaq-100 futures NQU6, +0.14%  gained 7.25 points, or 0.2%, to 4,645.25.
On Thursday, the Dow DJIA, -0.42% snapped a nine-session string of gains and ended a streak of all-time closing highs at seven. That came in part as chip maker Intel Corp. INTC, -3.98%  sank 4% on a disappointing quarterly revenue result. The Dow’s run of record highs and winning streak were the longest since March 2013.
“Stock markets entered a slippery decline during trading on Thursday, as the terrible combination of disappointing earnings, central bank inaction and recurrent concerns over the global economy weighed heavily on sentiment,” said Lukman Otunuga, FXTM research analyst, in a note.
Still, the Dow, Nasdaq Composite and S&P 500 could notch a fourth consecutive weekly gain, marking their longest weekly win streaks since a string of five weekly gains ended March 18, according to FactSet data.
Thursday’s “declines in global stocks should be no surprise…most major markets are tired,” he said.
The S&P SPX, -0.36% on Thursday dropped 7.85 points, or 0.4%, to 2,165.17, pulling back from Wednesday’s record closing high. The Nasdaq-100 COMP, -0.31%  lost 16.03 points, or 0.3%, to 5,073.90.
Data: Markit’s first July reading of its manufacturing purchasing managers index is due at 9:45 a.m. Eastern Time. Analysts polled by FactSet are looking for a reading of 51.5, which is still above the 50 level that indicates expansion.
There are no Federal Reserve speakers, as policy makers head into their meeting on July 26 and 27.
Corporates: Ahead of the bell, industrial conglomerate General Electric Co. GE, -0.58% posted a 15% rise in second-quarter revenue but a 2% decrease in orders. GE shares slipped 0.6% premarket.
Whirlpool Corp. WHR, -0.52%  issued second-quarter earnings and sales that outstripped expectations. The appliance maker also raised its full-year earnings forecast.
Honeywell International Inc. HON, -1.02% posted second-quarter earnings that beat expectations, but sales were below consensus. The industrial-sector heavyweight raised the low end of its full-year per-share earnings view and said it is creating two new business segments.
VF Corp. VFC, -1.64% whose apparel brands include Wrangler, Lee and The North Face, turned in second-quarter earnings that were above expectations. Revenue, however, missed and VF lowered its 2016 sales outlook.
American Airlines Group Inc.’s AAL, -2.67%  second-quarter per-share earnings met analyst expectations while revenue was slightly ahead of Wall Street’s estimate.
Shares of Advanced Micro Devices Inc. AMD, -3.51%  jumped 9% premarket after the chip maker late Thursday swung to a quarterly profit and reported its first sales increase in almost two years.
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Starbucks Corp. shares SBUX, +0.10%  could be active after the Seattle-based coffee retailer missed its quarterly sales target, citing international and domestic political and social unrest as the reason for its disappointing results.
Boeing Co. shares BA, -0.88% may move after the aircraft maker warned second-quarter charges could reach $2.05 billion.
Chipotle Mexican Grill Inc. CMG, -0.38% shares could be on the move after the company posted an 82% slide in quarterly profit late Thursday. The restaurant chain enacted costly promotions to win back customers following outbreaks of foodborne illness last year.
PayPal Holdings Inc. PYPL, +0.20% shares may be active after the payment services provider late Thursday posted a rise in revenue. It also announced a deal that will make it easier for consumers to use a Visa credit or debit card when paying with PayPal.
Visa Inc. V, -0.72% meanwhile, posted a 76% decline in quarterly earnings on charges related to a deal for its European operations.
SPX, -0.36% Other markets: Gold futures GCQ6, -0.41%  fell 0.5% to $1,324 an ounce. The U.S. Dollar Index DXY, +0.16%  was up 0.1% at 97.084. Oil futures CLU6, -0.36%  were flat at $44.77 a barrel ahead of weekly rig-count data due at 1 p.m. Eastern.
European stocks SXXP, -0.17%  shed 0.2% a day after the ECB left monetary policy unchanged. In Japan, the Nikkei Average NIK, -1.09%  ended 1.1% lower, as Asian markets fell.