U.S. equity futures mostly fell as investors waited for an exceptional day of earnings reports and a Federal Reserve meeting.
S&P 500 Broad Index futures fell 0.8% and Dow Jones Industrial Average futures fell 0.7%. Futures contracts related to Nasdaq-100 technology fell 0.1%.
Investors were gearing up for one of the busiest days of the quarterly earnings season, with Boeing ready to report ahead of the opening bell. Apple tech giants revenue,
Facebook and Tesla are due to arrive right after the market closes. Investors are eager to see how these companies fared in a quarter marked by continued lockdowns and house hold orders.
“The bar for tech stocks to beat is pretty high because we were still stuck and yet they seem to be doing well against those higher expectations,” said Hani Redha, portfolio manager at PineBridge Investments.
Microsoft shares gained 3.5% before the opening bell after the company reported record quarterly sales on Tuesday. Its shares closed at a new high on Tuesday.
Walgreens Boots Alliance rose 5.7% in pre-market commerce after the drugstore chain named Rosalind Brewer, COO of Starbucks, as its next general manager.
Profits have so far satisfied the market and investors continue to bet on economic support from the Federal Reserve and a possible stimulus package from the Biden administration. On Tuesday, the S&P 500 hit a new intraday high before slipping in the final minutes of trading.
“The Fed and Biden’s new stimulus packages – all of this provides a very positive backdrop for the stock market,” said Brian Walsh, Jr., portfolio manager at Walsh & Nicholson Financial Group. “They say we are not going to let the markets fail just yet and, with bond yields as low as they are, there are nowhere else.”
The Fed is generally expected to leave its monetary policy unchanged and President Jerome Powell will likely underscore the bank’s commitment to supporting the economy with low interest rates and bond purchases for the foreseeable future. . Mr Powell will likely be faced with questions about the health of the economy and how long the Fed’s stimulus measures will remain in place.
GameStop has jumped over 90% in pre-market trading, as day traders, powered by social media, appeared ready to cram into the retailer for another day. The stock rose 113% on Tuesday amid a battle between individual investors and the hedge funds selling the stock. After markets closed on Tuesday, Tesla CEO Elon Musk tweeted “Gamestonk !!” in an apparent reference to frenzied trading.
Data on durable goods orders will be released at 8:30 a.m. ET. The figures are expected to show an eighth consecutive monthly increase in orders, underscoring the resilience of the manufacturing sector during the pandemic.
In commodities markets, Brent, the international benchmark for oil, rose 0.7% to $ 56.01 per barrel. Gold prices fell 0.4% to $ 1,844.30 per troy ounce.
Overseas, the pan-continental Stoxx Europe 600 index was down 0.5%, while in Asia, stock indices were mixed. Japan’s Nikkei 225 rose 0.3%, Hong Kong’s Hang Seng fell 0.3%, while in mainland China, the Shanghai Composite index edged up 0.1%.
Write to Will Horner at [email protected]
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