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New York - US stocks climbed on Tuesday after two straight declining sessions, with index futures jumping after a report of a proposal for a 6-month debt extension for Greece as negotiations continued.
• Futures surged to a session high after MNSI reported the EU commission will propose the 6-month extension, citing sources.
• The European Commission said earlier it had low expectations that meetings of euro zone finance ministers and EU leaders this week would produce a final agreement on Greece, which wants a debt restructuring.
• After a sluggish start to the year that saw the S&P 500 drop 3.1% in January, the index managed to notch its best gain in seven weeks last week on a rebound in oil prices. The S&P stands 2.1% away from its record closing high on December 29.
• Coca-Cola shares climbed 2.5% to $42.25 before the opening bell, even as the soft drinks maker reported a 55% decline in quarterly profit as a stronger dollar hurt revenue from international markets.
• Starwood Hotels & Resorts Worldwide rose 6.4% to $75.80 premarket after the company posted quarterly results and announced plans to spin off its vacation ownership business.
• Even with some high-profile earnings misses from multinationals, largely as a result of dollar strength, Thomson Reuters data through Monday morning showed that 72.6% of the 328 S&P 500 companies reporting beat earnings expectations, above the 69% beat rate in the past four quarters.
• Economic data expected on Tuesday include December wholesale trade at 10:00 (1500 GMT). Expectations call for inventories to rise by 0.2% while sales are expected to decline by 0.3%.
• European shares hit session highs after the Greek extension report, while Asian equities were lower across the board as fears about Greece and escalating conflict in Ukraine sapped risk appetite.
Futures snapshot at 07:32 (12:32 GMT):
• S&P 500 e-minis were up 12.25 points, or 0.6%, with 131 170 contracts changing hands.
• Nasdaq 100 e-minis rose 26.25 points, or 0.62%, on volume of 22 734 contracts.
• Dow e-minis jumped 100 points, or 0.57%, with 18 293 contracts changing hands.
