Higher Than Expected Earnings Nurture Gains on US Futures

After experiencing a dramatic drop on Thursday, US futures rally on Friday as markets engulf higher than expected earnings reports.

S&P 500 futures inched up 5 points or 0.21% after the morning bell, at 6:31am ET (11:31am GMT). Dow futures did not stay behind, going up 87 points or 0.38%, while Nasdaq 100 futures jumped 10 points or 0.17%.

The most prominent gainers in pre-market trading were PayPal, which jumped 4.07% after reporting its 3rd quarter earnings figure, which exceeded by far analysts’ expectations. Nokia (HE: NOKIA) added 2.40%, while European telecom company Vodafone (LON: VOD) gained 0.76%. Social media site Snap Inc (NYSE: SNAP) jumped 2.69%.

General Electric (NYSE: GE) fell 4.40% after reporting lower than expected earnings in the 3rd quarter. Celgene, biopharmaceutical market leader (NASDAQ: CELG) went down 5.49% after failure of a key clinical trial, which in turn, has caused it to lose one of its major research drugs.

Other market makers, including Honeywell International Inc (NYSE: HON), oil company Baker Hughes, a GE Company LLC (NYSE: BHGE) and Procter & Gamble (NYSE: PG) publish their 3rd quarter earnings before the morning bell signals market opening.

Investors are eagerly awaiting the release of the home sales figure at 10am ET (3pm GMT), seeking for indicators that the US real estate sector is supporting. Cleveland Federal Reserve President Loretta Mester is also coming forward today at 2pm ET (7pm GMT).

After sinking on Thursday amid uncertainty caused by Spanish political turmoil in Catalonia, European stocks rally on Friday. DAX gains 37 points or 0.29%, while CAC 40 rises 10 points or 0.19%. British FTSE 100 tops up 16 points or 0.22%, while the Spanish IBEX 35 went up 5 points or 0.05%. Pan-European Euro Stoxx 50 also rebound 11 points or 0.33%.

Gold futures, unlike yesterday lost 0.52%, slipping to $1,283.31 a troy ounce and crude oil futures fell 0.83% to $50.87 a barrel. The US dollar index, which measures the greenback’s strength against a basket of six major currencies, hiked 0.41% to 93.38.