After moving notably higher over the two previous sessions, stocks are likely to see further upside in early trading on Wednesday. The major index futures are currently pointing to a positive open for the markets, with the S&P 500 futures up by 0.3 percent.
A positive reaction to the latest corporate earnings news may contribute to an extended rebound on Wall Street following the considerable weakness seen last week.
Shares of Tesla (TSLA) are skyrocketing by 11.4 percent in pre-market trading even though the electric vehicle maker reported weaker than expected first quarter results.
The surge by Tesla comes after CEO Elon Musk said the company plans to start production of a new affordable model by early 2025.
Semiconductor company Texas Instruments (TXN) is also seeing significant pre-market strength after reporting first quarter results that beat expectations on both the top and bottom lines.
Shares of Visa (V), Boeing (BA) and Mattel (MAT) are also likely to move to the upside after the companies reported better than expected quarterly results.
On the U.S. economic front, the Commerce Department released a report showing new orders for U.S. manufactured durable goods surged by more than expected in the month of March.
The report said durable goods orders soared by 2.6 percent in March after climbing by a downwardly revised 0.7 percent in February.
Economists had expected durable goods orders to spike by 2.3 percent compared to the 1.3 percent jump that had been reported for the previous month.
Excluding a surge in orders for transportation equipment, durable goods orders crept up by 0.2 percent in March after inching up by 0.1 percent in February. Ex-transportation orders were expected to rise by 0.3 percent.
U.S. stocks ended on a firm note on Tuesday, extending gains from the previous session, with technology shares once again outperforming amid optimism about earnings.
A batch of encouraging earnings updates and slightly easing concerns about the outlook for interest rates helped underpin sentiment.
The major averages all ended notably higher. The Dow settled with a gain of 263.71 points or 0.7 percent at 38,503.69. The S&P 500 jumped 59.95 points or 1.2 percent to 5,070.55, while the Nasdaq surged 245.33 points or 1.6 percent to settle at 15,696.64.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index shot up by 2.4 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index is up by 0.6 percent, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 0.2 percent.
In commodities trading, crude oil futures are slipping $36 to $83 a barrel after surging $1.46 to $83.36 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,329.80, down $12.30 compared to the previous session’s close of $2,342.10. On Tuesday, gold edged down $4.30.
On the currency front, the U.S. dollar is trading at 154.93 yen compared to the 154.11 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0683 compared to yesterday’s $1.0701.
Business News
U.S. Stocks May See Further Upside On Upbeat Earnings News
2024-04-24 12:52:47
