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Riku Tanaka
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Stocks
April 14 22:00

Futures are rising as China unveils trade data; focus on corporate results

US stock index futures jumped up by 1% on Tuesday (Apr 14) as better-than-anticipated trade data is unveiled by China. Driving the surge were signals from several nations that may be getting ready to ease debilitating lockdowns.
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US stock index futures jumped up by 1% on Tuesday (Apr 14) as better-than-anticipated trade data is unveiled by China. Also driving the surge were signals from several nations that may be getting ready to ease debilitating lockdowns despite initial earnings data that underlined economic hit from the COVID-19 pandemic.

JPMorgan Chase and Co released a Q1 profit that fell by more than 66% as it pumped it reserves to cover potential defaults that may arise as a result of the coronavirus crisis. Its shares, which have dropped by 29% this year, were up 2.4% in premarket.
Volatility fueled by the global crisis constrained Johnson and Johnson to slash its 2020 adjusted profit predictions, but its shares still rose 3% as its Q1 profits came in higher than previously projected, riding atop higher sales figures of its cancer medications and self-care items.
Finance specialists expect a corporate downturn for S&P 500 firms in 2020, with a 10.2% drop in earnings in Q1 and a 22.4% drop in Q2, as indicated by IBES gauges from Refinitiv.
"It should come as no surprise that earnings are going to be hit very hard in 2020," said Fiona O'Neill, deputy head of equities research at Fidelity International.
"But it would be wrong to focus too much on 2020. Instead, we must look to forecast where earnings will go in 2021 and beyond so that we can continue to identify those companies that are going to emerge from this as winners."
The benchmark S&P 500 index has steadily bounced back by about 26% in the previous month, fueled by record financial stimulus and early signs that the pandemic spread was reaching its zenith in some of the hardest-hit US areas. However the index is still about 22% lower than its February high point.
President Donald Trump said late on Monday (Apr 13) that his administration nearly finished with its plan to re-open the economy despite some state governors saying that the decision ultimately lies with them.
In the mean time, China's import/export data contracted less than March’s expectations predicted as manufacturing facilities restarted production, but specialists cautioned a definitive recuperation was months away.
At 6:58 am EST, Dow e-minis were up 281 points, or 1.21%, S&P 500 e-minis were up 27.5 points, or 1% and Nasdaq 100 e-minis were up 111 points, or 1.33%.
American Airlines Group Inc and United Airlines Holdings Inc gained more than 4% as sources said some top US airlines were nearing an agreement to receive US$25 billion offer for government payroll stimulus package.
Tesla Inc bounced 6.3% after Credit Suisse bank bumped up the tech behemoth's stock rating from "underperforming" to "neutral".
Wells Fargo and Co jumped 1.8% before releasing its Q1 results due at 8 am EST.