Oct 19 Reuters - U.S. stock indexes were set to open higher on Tuesday as positive results and forecasts from Johnson Johnson and Travelers fired up risk appetite after big banks kicked off the third quarter reporting period on a positive note last week.
Investors are now focusing on results from companies that are more exposed to supply chain constraints, price rises and labor shortages.
Johnson Johnson shares increased 0.2% after it raised its adjusted 2021 profit forecast, even as it stuck to its projection of $2.5 billion in sales from its COVID - 19 vaccine this year.
Travelers Cos Inc. adds 2.6% after the property and casualty insurer beat estimates for third-quarter profit.
The S&P 500 index is 1.3% away from a record high hit in early September with investors hoping that a flow of better than expected earnings reports could push the market to new highs despite concerns about an eventual tightening of monetary policy.
We could actually see uns hit a new all time high before the end of the year is out because of traditional corporate profits and corporate optimism, said Sam Stovall, Chief Investment Strategist at CFRA.
Analysts now expect S&P 500 earnings to show a 32.4% increase from a year ago, according to Refinitiv data.
Tech firms including Facebook Inc, Microsoft Corp, Alphabet Inc. and Apple Inc. rose between 0.2% and 0.5%. Netflix Inc. rose 0.1% to beat its quarterly results later in the day.
Procter Gamble Co fell 1.8% as it warned that higher commodity and freight costs would take a bigger bite out of earnings.
Tesla edged 0.8% higher on Wednesday ahead of its quarterly earnings with investors watching for indications of its performance in China.
Walmart Inc's shares rose 2.3% after Goldman Sachs added the world's largest retailer to its Americas Conviction List at 8: 34 a.m. ET, Dow e-minis were up 148 points, or 0.42%, S&P 500 e-minis were up 19 points, or 0.42%, and Nasdaq 100 e-minis were up 52 points, or 0.34%.