Shares of Netflix (NASDAQ:NFLX) and Intel (NASDAQ:INTC) are expected to drive a higher open for US stock markets on Thursday after the tech giants impressed with second quarter earnings reports. Gains in US stocks will be supported by positive international sentiment following parliamentary approval in Athens of the Greek bailout deal.
There shouldn’t be any surprises from Mario Draghi in his July ECB press conference but the potential exists to change where US markets eventually open.
Little is expected in the way of change to ECB monetary policy on Thursday but of greater significance could be a decision to raise the threshold for emergency lending to Greek banks and set the stage for their reopening and the lifting of capital controls. Judging by the cautious approach adopted by the ECB since it first blocked a request by the Bank of Greece to raise the limit, the ELA probably won’t be raised today. The ECB could wait until the Bundestag votes on Friday before lifting the ELA limit.
Yellen’s hawkish bias in her Humphrey Hawkins testimony could have been quite damaging to stock markets eager to see lower rates for longer. However, with corporate earnings so far coming ahead of expectations, markets are seeing the glass half full and focusing on the rosy economic picture painted by the Fed Chair. Yellen’s second day of testimony typically doesn’t see the kind of fireworks possible on the first.
Shares of Netflix could open higher by as much as 10% on Thursday after the online streaming company reported much better than expected subscriber growth alongside higher profits. International subscribers are driving the growth but the number of US subscribers was also higher than expected in part thanks to Netflix original content.
Intel shares are expected to leap higher on the open after the chip-maker reported better than expected earnings on the top and bottom line. Although revenues surpassed estimates they did decline 5% as the company struggles with waning demand for PCs.
Citigroup (NYSE:C), Goldman Sachs Group Inc (NYSE:GS), eBay Inc (NASDAQ:EBAY), Domino`s Pizza Group Plc (LONDON:DOM) and a host of other major companies announce second quarter earnings before the open on Thursday with Google (NASDAQ:GOOGL), Schlumberger NV (LONDON:SCL) and Advanced Micro Devices Inc (NASDAQ:AMD) amongst those reporting after the closing bell.
Futures suggest the:
S&P 500 will open 12 points higher at 2,119 with the
US 30 expected to open 89 points higher at 18,139 and the
Nasdaq 100 36 points higher at 4,564.
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