* Netflix up 18 pct on strong subscriber growth
* Goldman Sachs gains as profit rises 58 pct
* J&J slips on Pfizer's plans to sell generic drug
* Futures up: Dow 98 pts, S&P 14.5 pts, Nasdaq 37.25 pts
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Oct 18 Wall Street was set for a higher open on
Tuesday, buoyed by a slew of better-than-expected quarterly
reports, including from Netflix and Goldman Sachs.
Shares of Netflix surged 18 percent to $117.86 in
heavy premarket trading after the video streaming website added
many more subscribers in the third quarter than expected.
Goldman rose 1.2 percent and lifted shares of other
banks after the company's third-quarter results blew past Wall
Street estimates as it raked in higher trading revenue.
A slew of better-than-expected earnings, including from big
U.S. banks, in recent days have led analysts to narrow their
estimate for the drop in third-quarter profit at S&P 500
companies to 0.1 percent from their earlier view of 0.7 percent.
Of the 37 S&P 500 companies that have reported results until
Monday, 78 percent have reported earnings that have topped
analysts average estimate, according to Thomson Reuters I/B/E/S.
"The markets are expecting an inflection point as we move
from the third to the fourth quarter, and so what they will be
parsing in management guidance is for view that earnings turn
positive in the fourth quarter," said David Donabedian, chief
investment officer of Atlantic Trust Private Wealth Management.
Dow e-minis were up 98 points, or 0.54 percent at
8:34 a.m. ET (1234 GMT), with 27,999 contracts changing hands.
S&P 500 e-minis were up 14.5 points, or 0.68 percent,
with 155,654 contracts traded.
Nasdaq 100 e-minis were up 37.25 points, or 0.78
percent, on volume of 31,213 contracts.
A report from the Labor Department showed consumer prices
rose 0.3 percent in September, after rising 0.2 percent the
previous month, due to strong gains in gasoline and rents.
The dollar fell from the seven-month high it held for
the past five days after Federal Reserve Vice Chair Stanley
Fischer said Monday that the U.S. economy was very close to its
employment and inflation goals, but warned on any rash changes
to monetary policy.
IBM fell 2.6 percent after reporting its 18th
straight quarter of revenue decline, attracting a flurry of
price target cuts from brokerages.
Intel, scheduled to report after markets close,
rose 1.6 percent on a Barclays upgrade. Yahoo, also due
to report in the evening, was up 0.7 percent.
Johnson & Johnson was down 0.24 percent, while
Pfizer gained 0.95 percent on Pfizer's plan to ship a
cheaper biosimilar to Remicade, JNJ's top selling product. The
news overshadowed J&J's slight earnings beat.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by