U.S. stock index futures rose on Tuesday as IBM rallied after its quarterly results, though indexes were slightly off their early highs following a weak report from Goldman Sachs.
Dow component International Business Machines Corp (IBM.N) added 2 percent to $178.75, but on the downside, Goldman Sachs Group Inc (GS.N) fell 3 percent to $125.40 before the bell.
IBM said late Monday that new business at its services division surged more than expected in the second quarter, raising hopes 2011 would be a good year for the technology sector. For details, see
Goldman said net income rose during the second quarter but fell short of lowered market expectations as fixed income trading revenue dropped sharply.
Bank of America early Tuesday posted a second-quarter net loss of $8.8 billion after a big settlement with mortgage bond investors. Excluding charges, net income was $3.7 billion, but revenue tumbled 54 percent.
"A lot of investors were worried that the recent soft patch we went through here would show up in earnings, but IBM is showing that multinationals can really fill the gap. That's encouraging," said Cort Gwon, chief strategist at HudsonView Capital Management in New York.
"The big concern with Bank of America was that they were going to have more write-offs than anticipated from the settlement. But if they can put the settlement behind them, they should do well."
S&P 500 futures SPc1 rose 8.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 added 78 points and Nasdaq 100 futures NDc1 rose 18.5 points.
Coca-Cola Co (KO.N) reported slightly better-than-expected quarterly results on Tuesday, helped by strong growth in emerging markets. Johnson & Johnson (JNJ.N) also posted quarterly results. Read More
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