* Futures up: Dow 0.59%, S&P 500 0.36%, Nasdaq 0.43%
* Apple ( AAPL ) names hardware veteran Ternus as new CEO to
succeed Cook
* Amazon ( AMZN ) climbs after pledging to invest up to $25 bln in
Anthropic
* UnitedHealth ( UNH ) gains after raising FY profit outlook
(Updates after retail sales data)
By Niket Nishant and Avinash P
April 21 (Reuters) - Wall Street's main indexes were on
course to open higher on Tuesday as renewed artificial
intelligence optimism and strong corporate earnings bolstered
markets battered by constant back-and-forth over the resolution
of the Middle East conflict.
J.P. Morgan raised its year-end target for the S&P 500,
citing AI and tech-driven earnings, while Amazon ( AMZN ) said
on Monday it will invest up to $25 billion in Anthropic,
signaling Big Tech is still willing to pour money into AI.
Amazon ( AMZN ) shares rose 2.7%.
Investors are also awaiting the Senate confirmation hearing
for Kevin Warsh, U.S. President Donald Trump's nominee to lead
the Federal Reserve.
Republican Senator Thom Tillis has promised to block the
confirmation until the Department of Justice ends an
investigation into Fed Chair Jerome Powell that Tillis sees as a
threat to the central bank's independence.
The outcome of the hearing could have far-reaching
implications for monetary policy. Typically, if a nominee for
Fed chair is not confirmed, the incumbent remains in place in
the interim. But Trump has vowed to fire Powell if he does not
leave when his term ends in May.
At 8:36 a.m. ET, Dow E-minis rose 291 points, or
0.59%, S&P 500 E-minis added 25.75 points, or 0.36% and
Nasdaq 100 E-minis were up 115.5 points, or 0.43%.
Despite the uncertainty, AI hopes and upbeat earnings
prevented investors from retreating to the sidelines.
"The U.S. equity market should continue to make new highs in
(the) coming months on the back of continued earnings growth,"
analysts at Goldman Sachs said.
"Consensus earnings estimates have risen consistently in
recent weeks, providing the fundamental underpinning for the
market rally."
Of the 48 companies in the benchmark S&P 500 index
that reported earnings as of last Friday, 87.5% surpassed
analysts' estimates, compared with a long-term average of 67.4%,
according to LSEG data.
Wall Street will also be assessing a deluge of earnings on
Tuesday.
UnitedHealth ( UNH ) jumped 7.5% in premarket trading after
the healthcare conglomerate raised its annual profit forecast
and beat Wall Street expectations for the first quarter.
Peers CVS Health ( CVS ) and Humana rose more than
3% and 5.4%, respectively.
GE Aerospace fell 4.6%. The company said it was
bracing for a tougher backdrop of elevated oil prices, fuel
supply constraints and slower global growth.
WAR FUELS VOLATILITY
Markets have been pulled in opposite directions by a torrent
of conflicting headlines in recent days.
On Friday, Tehran's vow to reopen the Strait of Hormuz -- a
crucial waterway for oil shipping -- briefly sparked hopes for
de-escalation, which quickly faded over the weekend when Iran
fired what appeared to be warning shots at vessels and the U.S.
military seized an Iranian cargo ship.
In an interview with CNBC on Tuesday, Trump said the U.S.
would end up with a "great deal" with Iran. However, uncertainty
around the end of the two-week ceasefire loomed.
"In the near term, equity market gyrations will likely
continue to mirror geopolitical volatility," Goldman analysts
said.
Alaska Air ( ALK ) fell 2.4% as the airline withdrew its
full-year profit forecast.
Apple ( AAPL ) was among the other stocks under the
spotlight in the premarket session, falling 0.5% after the
company said CEO Tim Cook would hand over the reins to longtime
hardware boss John Ternus.
Separately, data showed that U.S. retail sales increased
more than expected in March, as the war with Iran boosted
gasoline prices and receipts at service stations, while tax
refunds supported spending elsewhere.
(Reporting by Niket Nishant and Avinash P in Bengaluru; Editing
by Devika Syamnath and Shinjini Ganguli)