With traders reacting positively to the latest batch of earnings news, stocks may move to the upside in early trading on Tuesday. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 48 points.
Financial stocks may help to lead the way higher after Goldman Sachs (GS) reported much better than expected second quarter results.
Goldman Sachs reported second quarter adjusted earnings of $1.78 per share on revenues of $6.6 billion compared to analyst estimates for earnings of $1.12 per share on revenues of $6.4 billion.
Beverage giant Coca-Cola (KO) also reported better than expected second quarter results, while Johnson & Johnson (JNJ) reported second quarter sales that fell short of estimates and lowered its full-year earnings guidance.
Nonetheless, trading activity may be somewhat subdued ahead of Federal Reserve Chairman Ben Bernanke's testimony before the Senate Banking Committee. Bernanke is due to begin his testimony at about 10 am ET.
Bernanke's comments are likely to be closely scrutinized for indications regarding the likelihood of further stimulus from the central bank.
On the economic front, the Labor Department recently released a report showing that U.S. consumer prices came in unchanged in June, as a steep drop in energy prices was offset by higher prices for food, medical care, and apparel.
by RTT Staff Writer
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