Twitter soared 27 percent in early New York trading after also boosting its annual sales forecast. Amgen rallied 3.8 percent after saying it will cut jobs and close plants. Hess Corp. gained 4.1 percent after posting profit that beat projections and saying it will form a master limited partnership for one of its units. Rockwell Automation Inc. dropped 2.2 percent after reporting sales that fell short of estimates.
“Twitter is quite certainly pushing the futures, but there’s a lot of underlying tension,” said Mike Franklin, chief investment strategist at Beaufort Securities Ltd. in London. “It’s as if the market is taking a lot of sugar at the moment and is very hyped up: If something’s a little bit better than expected the market goes way up, and just a little bit out of line there’s a huge selloff.”
The rallies in Twitter and Amgen shares show the market isn’t taking the Federal Reserve’s rumination on stock prices too seriously. The central bank said two weeks ago that industry valuations are stretched. Nasdaq 100 Index futures advanced 0.4 percent today, while contracts on the Russell 2000 Index climbed 0.7 percent.
The Fed will reduce its monthly purchases for the sixth time to $25 billion from $35 billion after a two-day policy meeting ending today, according to economists surveyed by Bloomberg News. Data at 8:30 a.m. in Washington may show the world’s largest economy expanded at a 3 percent annualized rate in the second quarter, economists predicted.
A report from the ADP Research Institute at 8:15 a.m. may show U.S. companies added 230,000 workers this month, according to the median estimate. That would follow a 281,000 increase in June that was the most since November 2012.
Kraft Foods Group Inc., MetLife Inc. and Whole Foods Market Inc. are among 37 S&P 500 companies reporting earnings today. About 78 percent of those that have posted results this season have beaten analysts’ estimates for profit, while 67 percent exceeded sales projections, data compiled by Bloomberg show.
Profits probably rose 8.2 percent in the second quarter, while sales gained 3.5 percent, according to analyst estimates compiled by Bloomberg.
Twitter surged 27 percent to $49.13. The microblogging company raised its its full-year sales forecast to as much as $1.33 billion and said revenue for the current quarter will be $330 million to $340 million, exceeding analysts’ average estimate. Twitter reported that second-quarter sales more than doubled to $312.2 million, topping projections, and user growth jumped 24 percent to 271 million members.
Amgen added to 3.8 percent to $127.95. The world’s biggest biotechnology company by sales posted earnings excluding one-time items of $2.37 a share, topping by 30 cents the average analyst estimate. The company raised its profit estimate for the year to as much as $8.40 a share excluding one-time items. It also said it will cut more than 2,400 jobs through 2015 and close plants in two states.
Hess rose 4.1 percent to $103.50. The oil company said it will form a master limited partnership for its Bakken midstream business that will include rail, gas and pipeline assets. It also posted second-quarter adjusted earnings of $1.38 a share, beating the average analyst estimate of $1.18.
Humana Inc. gained 1.9 percent to $130. The provider of Medicare coverage said sales in the second quarter rose to $12.22 billion, topping projections. The company reported profit of $2.19 a share, matching the average analyst estimate.
Edwards Lifesciences Corp. (EW) climbed 4.7 percent to $88.45 in German trading. The biggest maker of heart valves that are inserted without cracking open the chest raised its 2014forecast to as much as $3.34 a share excluding one-time items. Second-quarter profit excluding one-time items of 88 cents a share beat the 77-cent average analyst estimate.
Rockwell Automation dropped 2.2 percent to $117.34 in early U.S. trading. The seller of software and controls that make machinery more efficient said third-quarter revenue was $1.65 billion, compared with the average analyst estimate of $1.68 billion.
Qiagen NV (QGEN) fell 1.1 percent to $24.91. The maker of diagnostic tools to tailor medical treatments said currency moves may hurt earnings this year. The company reported second-quarter adjusted profit of 26 cents a share at constant exchange rates, compared with the average analyst projection of 25 cents.
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