Cantor Fitzgerald

Marc Pado Comments: US Stock Futures Rally Due To Strong HSBC and BNP Paribas Earnings

August 3, 2010, Newsweek

HSBC Holdings and BNP Paribas' strong earnings rallied U.S. stock futures Monday. HSBC Holdings reported a surge in its first-half net profit, which more than doubled to 6.76 billion. Besides, the company said loans and other liabilities fell to the lowest since the start of the financial crisis.

Shares of HSBC rallied 5% in London trading. On the other hand, BNP Paribas said its second-quarter profit increased 31% and shares 5% in Paris trading. As the U.S. stock showed significant growth, investors awaited U.S. manufacturing data and comments on the economy from the Federal Reserve chairman.

Moreover, the strong company earnings enabled stock futures to track strong gains to start the month in Asian and European equity. The Dow gained 7.1% for July and posted as a result its first monthly gain since April. "Economic news is moving back into the lead position" for markets, said Marc Pado, market strategist with Cantor Fitzgerald. Treasury Secretary Timothy Geithner is suppose to speak Monday afternoon at New York University about the next steps for financial reform.