Stocks are likely to move to the upside in early trading on Wednesday, adding to the gains posted in the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.6 percent.
Early buying interest is likely to be generated in reaction to upbeat earnings news from big name companies such as Netflix (NFLX), Procter & Gamble (PG) and Travelers (TRV).
Shares of Netflix are surging by 14.6 percent in pre-market trading after the streaming giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines. The company also said it is raising prices after a jump in subscribers during the quarter.
Consumer goods giant Procter & Gamble is also seeing notable pre-market strength after reporting better than expected fiscal second quarter results.
Shares of Travelers are also jumping by 5.8 percent in pre-market trading after the insurance giant reported fourth quarter results well above analyst estimates.
On the other hand, shares of Johnson & Johnson (JNJ) may move to the downside after the drug giant reported better than expected fourth quarter results but provided disappointing sales guidance for 2025.
After a positive start, U.S. stocks largely kept moving higher on Tuesday, and the major averages all ended the day’s session on a firm note. A drop in bond yields and optimism about a few interest rate cuts this year contributed to the positive sentiment in the market.
The Dow closed up 537.98 points or 1.2 percent, at 44,025.81. The S&P 500 ended higher by 52.58 points or 0.9 percent, at 6,049.24, while the Nasdaq settled at 19,756.78, gaining 126.58 points or 0.6 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index jumped by 1.6 percent, while China’s Shanghai Composite Index slid by 0.9 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is up by 1.1 percent and the German DAX Index is up by 1.3 percent.
In commodities trading, crude oil futures are slipping $0.16 to $75.67 a barrel after tumbling $1.56 to $75.83 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,763.50, up $4.30 compared to the previous session’s close of $2,759.20. On Tuesday, gold rose $10.50.
On the currency front, the U.S. dollar is trading at 155.92 yen compared to the 156.30 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0428 compared to yesterday’s $1.0428.
Business News
U.S. Stocks May See Initial Strength On Upbeat Earnings News
2025-01-22 13:56:00
