(Reuters) - U.S. stocks eyed a third day of gains on Thursday, leaving behind a brutal month of losses, as improving risk sentiment globally was further boosted by a string of positive earnings reports.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 30, 2018. REUTERS/Brendan McDermid
The S&P S&P 500 futures ESc1 pointed to half a percent rise at the open following gains in Chinese shares on a new round of stimulus plan, while European stock markets hit eight-day highs also on strong reports.
Chemicals producer DowDuPont Inc (DWDP.N) rose 4.4 percent in premarket trading after quarterly profit topped estimates, and the company announced $3 billion share buyback.
NXP Semiconductors (NXPI.O) gained 4.6 percent after the chipmaker topped profit and revenue estimates.
Apple (AAPL.O), last among the major technology names to report earnings, inched up 0.7 percent. Its earnings are due after the market closes on Thursday.
“A consolation phase is in place as the correction for this year is now behind us,” said Peter Cardillo, chief market economist at Spartan Capital Securities in a client note.
October marked the worst month for the S&P 500 .SPX since September 2011 and the Nasdaq's biggest monthly fall since November 2008 as fears of rising borrowing costs, global trade disputes and a possible slowdown in U.S. corporate profits spooked equity investors.
The CBOE Volatility index .VIX, also known as Wall Street’s fear gauge, eased to more than seven-day low at 20.42 points.
S&P 500 companies are on pace to have posted a 26.3 percent rise in third-quarter earnings with more than half of the constituents having reported, according to I/B/E/S data from Refinitiv. But despite the big overall profit increase, some high-profile companies have issued disappointing reports.
At 7:32 a.m. ET, Dow e-minis 1YMc1 were up 148 points, or 0.59 percent. S&P 500 e-minis ESc1 were up 14.25 points, or 0.53 percent and Nasdaq 100 e-minis NQc1 were up 34.5 points, or 0.49 percent.
Spotify Technology (SPOT.N) fell 4.1 percent after the paid music streaming service reported quarterly revenue and margins in line with expectations and a modest rise in premium subscribers.
On economic data, the Institute for Supply Management’s report on manufacturing activity is likely to show national factory activity index falling to 59.0 in October, from 59.8 in September, due at 10 a.m. ET (1400 GMT).
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty