* Netflix and Texas Instruments rally on results
* DuPont and Travelers raise quarterly dividends
* Chinese factory data raises growth concerns
* Dow up 69 pts, S&P up 6.4 pts, Nasdaq up 19.25 pts
By Ryan Vlastelica
NEW YORK, April 23 U.S. stock index futures
pointed to a higher open on Tuesday, indicating stocks could
notch a third straight day of gains as strong earnings improved
Nasdaq futures showed exceptional strength following results
from Netflix and Texas Instruments, though positive indicators
could be found across sectors, including a pair of Dow
Investors are looking ahead to Tuesday's data on U.S. March
new home sales, which, according to economists, rose modestly
from the previous month. The data is due at 10 a.m. (1400 GMT).
Texas Instruments Inc late Monday reported strong
results and said improving demand for its chips would lead to
growth in the current quarter, sending shares up 0.6 percent to
$35.01 before the opening bell.
Netflix Inc soared 24 percent to $216.15 in
premarket trading after the company reported earnings that beat
expectations and an impressive growth in subscribers. Upscale
leather goods maker Coach Inc also reported earnings
that topped expectations, sending shares up 12 percent to
"Both Netflix and Coach have gotten really beaten down, so
it isn't surprising to see them react so well right now," said
Rick Fier, director of trading at Conifer Securities in New
York. "We could see moves like this in energy and material
names, which have also gotten oversold."
S&P 500 futures rose 6.4 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 added 69
points and Nasdaq 100 futures rose 19.25 points.
Chemicals maker DuPont reported adjusted
first-quarter earnings that beat expectations and raised its
quarterly dividend. Travelers Cos Inc, which like DuPont
is a Dow component, also raised its quarterly dividend.
DuPont rose 10 cents before the bell while Travelers jumped
2.9 percent to $87.
Equities have steadily advanced in 2013, leading many
analysts to call for a correction, although major indexes have
rebounded off declines. Still, data pointing to weakness have
raised questions about whether the rally will continue.
In China, data showing little growth in factory activity was
the latest indicator that global growth may come under pressure.
Last week other discouraging economic data from China
contributed to a massive drop in commodity prices.
"The news from overseas has been negative recently, but some
earnings have shown that recent declines here were really
overdone," said Fier.
Investors will be watching the S&P's 50-day moving average
of 1,544.96. If the index falls below that level, as it did last
week, it could be another sign that the rally is stumbling. The
index closed at 1,562.50 on Monday.
Earnings season has been largely positive, with more than 67
percent of S&P 500 companies that have reported beating
expectations, according to Thomson Reuters data. Still, there
have been a number of high-profile disappointments, including
from IBM and General Electric Co.
Analysts see earnings growth of 2.1 percent this quarter, up
from expectations of 1.5 percent at the start of the month.
Apple Inc, Illinois Tool Works and AT&T Inc
are due to report Tuesday.
U.S. stocks rose on Monday, rebounding from steep losses in
the previous week. Microsoft Corp helped lift the
Nasdaq as an activist investor took a stake in the company.