Stock index futures pointed to a higher open on Tuesday after a strong quarterly report from IBM and a surge in housing starts, sparking investor optimism a day after a selloff.
Bank stocks were also in focus after Goldman Sachs Group Inc
Dow component International Business Machines Corp
Housing starts topped forecasts in June to touch a six-month high, and permits for future construction unexpectedly increased, the government reported, likely reflecting growing demand for rental apartments.
The broad feeling in markets today seems to be one of relief, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Connecticut.
There's a sense that corporations are growing at a healthy clip, the housing starts was very encouraging, and that's allowing us to be unfazed by Goldman.
S&P 500 futures rose 6.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 76 points, and Nasdaq 100 futures rose 22.5 points.
Goldman's second-quarter net income rose but fell short of lowered expectations as fixed income trading revenue dropped sharply. Bank of America posted a second-quarter net loss of $8.8 billion after a big settlement with mortgage bond investors.
Goldman fell 3.3 percent to $125.10 before the bell, while Bank of America edged 0.6 percent lower to $9.66.
Coke rose 0.4 percent to $67.40, while J&J was 0.3 percent higher at $67.31. Both stocks are Dow components.
The latest reports followed strong results from JPMorgan Chase & Co
Two weeks before a final deadline, U.S. President Barack Obama and top lawmakers faced more pressure for a deal to raise the debt ceiling amid a growing sense that a last-ditch plan taking shape in Congress may be the only way to avoid a U.S. default.
U.S. stocks dropped on Monday as bank shares bore the brunt of investor frustration over governments' inability to solve debt crises in the United States and Europe.
(Editing by Jeffrey Benkoe)