Azernews.Az

By Bloomberg

U.S. stock-index futures rose after China’s central bank cut lenders’ reserve requirements by the most since the global financial crisis, and companies including Morgan Stanley posted earnings.

Morgan Stanley added 1.4 percent after reporting first- quarter profit that beat analysts’ estimates and the highest adjusted revenue in more than five years. Hasbro Inc. jumped 7.8 percent after the world’s second-largest publicly held toymaker reported better-than-estimated quarterly revenue and earnings.

E-mini contracts on the Standard & Poor’s 500 Index expiring in June added 0.5 percent to 2,085.75 at 7:30 a.m. in New York. Dow Jones Industrial Average futures gained 97 points, or 0.6 percent, to 17,867. China cut the main reserve ratio by 1 percentage point, the most since 2008, amid the slowest economic expansion in six years.

“It’s a reminder for investors that central banks are very accommodative and here to step in when required,” said Andreas Nigg, head of equity and commodity strategy at Vontobel Asset Management in Zurich. “This tends to push investors into more risky assets. We had quite a correction on Friday so it may also be a technical reversal.”

U.S. stocks on Friday fell the most in three weeks as data signaled stronger inflation, stoking concerns about an interest rate increase, and as China tightened market trading rules. The S&P 500 last reached a multi-year high on March 2, the same day the Nasdaq Composite Index topped 5,000 for the first time in 15 years.

Earnings Reports

International Business Machines Corp. is also among nine companies reporting results today. Analysts expect a slump in earnings for S&P companies through September, predicting a fall of 4.3 percent in the first quarter, amid concern over a surging dollar and worse-than-forecast economic reports.

Halliburton Co. added 1.3 percent after posting earnings excluding certain items that beat analyst forecasts.

Costco Wholesale Corp. rose 1.3 percent. The retailer struck a deal with Visa Inc. and Citigroup Inc. under which its acceptance costs for credit-card payments will be about zero, according to people familiar with the arrangement.

Michael Kors Holdings Limited slipped 1 percent after Mizuho Financial Group Inc. cut its recommendation on the luxury retailer to neutral from buy.