US futures gain on China data

New York - US stock index futures rose on Wednesday, after better-than-expected economic data in China and ahead of the latest batch of corporate earnings.

The world's second-largest economy grew 7.5% in the second quarter, just above the 7.4% estimated by analysts, supported by the Chinese government stimulus.

Also supporting early gains was chipmaker Intel, which rose 5% to $33.30 in premarket following second-quarter results that topped analysts' estimates. The company also forecast third-quarter revenue above Wall Street's expectations.

Bank of America shed 0.9% to $15.67 in premarket after the second-largest US bank by assets reported a 43% drop in second-quarter profit as mortgage revenue fell and litigation costs increased.

IBM will partner exclusively with Apple to sell iPhones and iPads loaded with applications geared at enterprise clients this fall, the companies announced late on Tuesday. IBM shares gained 2.2% to $192.59 and Apple advanced 2.5% to $97.72 in premarket.

But Yahoo shares were off 3.7% to $34.30 after its disappointing second-quarter results and outlook, although the company pledged to pay its shareholders at least half the proceeds from Alibaba Group Holding's mega-IPO this fall.

Merger and acquisition activity continued on Wall Street. Time Warner shares jumped 13.1% before the bell after the New York Times reported Twenty-First Century Fox made an $80bn takeover offer for the company that was turned down.

Italy's Gtech will buy US slot machine maker International Game Technology for $6.4bn including debt. IGT shares jumped 10.1% to $17.07 before the opening bell.

S&P 500 e-mini futures were up 6.5 points and fair value - a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract - indicated a higher open.

Dow Jones industrial average e-mini futures rose 54 points and Nasdaq 100 e-mini futures added 20.25 points.

Economic data expected on Wednesday includes producer prices for June at 14:30, June industrial production at 15:15 and the National Association of Home Builders/Wells Fargo housing market index for July at 14:00.

After the closing bell, eBay and SanDisk are among S&P 500 companies due to report earnings.

S&P 500 companies' profits are expected to grow 5.2% in the second quarter, according to Thomson Reuters data, down from the 8.4% growth forecast at the start of April. Revenue is seen up 3.2%.

European equity markets recovered from losses in the previous session as a rebound in Banco Espirito Santo and in mining stocks lifted the region's bourses.

Asian stocks held steady after China reported economic growth that was just ahead of market expectations, drawing a sigh of relief from investors.