U.S. stock index futures rose on Wednesday, giving investors a reprieve a day after Wall Street lost its footing following weak results from some corporate heavyweights. Earnings will continue to be in the spotlight. Morgan Stanley reported a surge in quarterly profit, rounding up earnings for the big U.S. banks. Its shares rose nearly 2 percent in premarket trading.
Key companies scheduled to release results after markets close on Wednesday include Dow component American Express, eBay and Qualcomm. Tepid quarterly numbers from Goldman Sachs and Johnson & Johnson raised worries about pricey market valuations and pulled the major U.S. stock indexes lower on Tuesday.
Overall profits of S&P 500 companies are estimated to have risen 10.7 percent in the latest quarter – the best since 2011, according to Thomson Reuters I/B/E/S. Despite some weak spots, earnings seem to be promising. Of the 45 S&P 500 companies that have released results so far, nearly 76 percent have topped earnings estimates, according to Thomson Reuters I/B/E/S.
You may also like to watch:
The dollar, which has been beaten down by growing concerns about President Donald Trump’s economic agenda, rose on Wednesday after U.S. Treasury Secretary Steven Mnuchin said the president was not trying to talk down the strength of the currency. While no top-tier economic data is due on Wednesday, investors will keep an eye on the Federal Reserve’s Beige Book, which will give a glimpse into economic conditions across the United States. The data is due at 2:00 p.m. ET (1800 GMT).
Shares of IBM sank more than 5 percent to $161.33 after the company reported a bigger-than-expected decline in revenue for the first time in five quarters.
Futures snapshot at 7:02 a.m. ET: Dow e-minis were up 22 points, or 0.11 percent, with 17,761 contracts changing hands. S&P 500 e-minis were up 6 points, or 0.26 percent, with 92,157 contracts traded. Nasdaq 100 e-minis were up 15.5 points, or 0.29 percent, on volume of 18,886 contracts.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)