Global Markets Rise On Earnings, ECB Hints At Stimulus, Semi’s Lead In Asia

The U.S. Futures Are Up In Early Trading

The U.S. futures are indicating a mildly positive open for the major indices on Thursday. The Dow Jones Industrial Average is in the lead with a gain of 0.31% while the S&P 500 and NASDAQ Composite are both up about 0.10%. The move is supported by a round of better than expected earnings but gains are capped by uncertainty for the future. While this quarter’s earnings are better than expected the outlook for future earnings continues to wane.

Today’s reports include 3M, Tesla, Comcast, and Facebook. 3M reported better than expected EPS and revenue that sent its shares up 4.7%. Comcast also beat on the top and bottom lines after it acquired 209K new Internet customers. Shares of Facebook are also moving higher after beating estimates. Analysts warn that FB stock is not a buy. Tesla is perhaps the biggest story of the morning. The embattled maker of electric cars missed on the top and bottom line and delivered a report that did not deliver much for analysts to like. Google, Amazon, Intel, Starbucks and Mattel all report after the close of trading today.

ECB Holds Rates Steady, Hints At Stimulus

EU shares are broadly higher following a policy meeting of the ECB. The ECB held rates steady despite an expectation for 10 bps of cut. The bank did alter its policy statement hinting the interest rates would remain at their current low levels or lower for an indefinite period of time. ECB President Mario Draghi is slated to leave his position at the end of the year. He is expected to introduce more stimulus including a rate cut before his departure.

The French CAC is in the lead at midday with a gain of 0.75%. The DAX and FTSE 100 are also higher but posting gains closer to 0.30%. In stock news, shares of AstraZeneca are among today’s leaders after it reported better than expected results for the 2nd quarter. Along with the results, AstraZeneca raised its full-year guidance. Shares of Cobham surged more than 35% after U.S. private-equity firm Advent International said it would buy the company.

Semiconductors Lead Markets In Asia

Asian markets are mostly higher as earnings and central bank outlook lift hopes. The Australian ASX led the advance with a gain of 0.61% after the RBA chief let it be known Australians can expect an extended period of low rates. The RBA has cut rates twice in the last two months. The Shanghai Composite is runner up in today’s session with a gain near 0.50% while the other advancing issues gained about 0.25%. The Korean Kospi is the only index to fall. That move was driven by escalating tensions between South Korea and Japan that has tech supply-chains in danger.