Strong Earnings Lift US Futures
US stock futures rose on Tuesday, buoyed by strong earnings reports, with the Nasdaq 100 approaching a record high. Key sectors like defense and aerospace saw significant gains, with GE Aerospace up 3% and Raytheon expected to surge 6% following positive results. The US secured a minerals supply agreement with Australia, easing concerns over rare earth shortages. Coca Cola and Philip Morris also reported gains, while earnings calls for Netflix and Texas Instruments are anticipated later.
US stock futures rebounded on Tuesday, extending gains from the last two sessions on optimistic earnings while markets assessed the outlook of trade between China and the US. The three main averages were above the headline, with the Nasdaq 100 set for a record high.
The defense and aerospace sectors took the early spotlight following positive earnings from key companies.
GE Aerospace futures were 3% higher on strong earnings and a positive profit forecast. Also, Raytheon was set for a 6% surge after its results, also reflecting the company's confidence over supplies of minerals that are essential for operations.
The US reached an agreement for key minerals supply with Australia ahead of President Trump's meeting with Chinese counterpart Xi Jinping, limiting the risk of US shortages for a group of rare earths.
Additionally, Coca Cola jumped 2% and Philip Morris was slightly higher after their results.
Calls for Netflix and Texas Instruments are due after the bell.
