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US stock futures rise as Coca-Cola, IBM report stronger than expected results
NEW YORK (AP) ' Stock futures rose Tuesday, getting a lift from stronger than expected earnings from Coca-Cola and IBM.
Bank of America, Goldman Sachs and other large banks are also rolling out their earnings reports.
Coca-Cola Co.'s net income rose 18 percent in the second quarter with stronger sales overseas. The world's largest beverage maker raised some prices to offset higher ingredient costs. Coca-Cola's stock was up less than 1 percent ahead of the opening.
IBM Corp. shares rose 2 percent in the premarket after the technology company reported results late Monday that beat estimates. Corporate software spending held steady during the quarter.
One surprise so far is the Cleveland banking company KeyCorp. KeyCorp reported soaring second-quarter earnings Tuesday morning thanks to a drop in loan losses. The bank posted net income of 25 cents a share, up from 3 cents a share a year ago and better than Wall Street expected. Its shares jumped 4 percent in premarket trading.
Bank of America Corp. posted a second-quarter loss of 90 cents per share Tuesday morning. That's a wider loss than analysts polled by data provider FactSet expected. Part of the loss was a result of Bank of America's 8.5 billion settlement with mortgage-bond investors. The bank's shares were flat in premarket trading.
Ahead of the opening bell, Dow Jones industrial average futures are up 87 points, or 0.6 percent, at 12,402. S&P 500 futures are up 8 points or 0.7 percent, at 1,308. Nasdaq 100 futures are up 19 or 0.8 percent, at 2,359.
Europe's banking troubles and the impasse over lifting the U.S. government's borrowing limit pummeled the stock market on Monday.
Two weeks are left before the Treasury Department says the government must lift the country's $14.3 trillion borrowing limit or risk defaulting on its obligations. House Republicans are preparing to vote Tuesday on a plan that would lift the debt ceiling but also slash spending. The proposal includes a balanced-budget amendment to the U.S. Constitution. President Barack Obama pledged to veto the bill.