U.S. stock index futures rose on Wednesday, helped by upbeat quarterly results and forecasts from companies such as Johnson & Johnson and Harley Davidson, while shares linked to economic growth also climbed.
Johnson & Johnson gained 1.2% in premarket trading after the drugmaker forecast upbeat 2021 earnings, while Harley-Davidson Inc added 3.5% as it reported a second straight quarterly profit.
Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak, as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.
Netflix Inc, the first to report earnings from the FAANG group, said it would make a deeper dive into video games as the movie and TV streaming service projected weak subscriber growth. Its shares fell 0.3%.
Coca-Cola Co gained 3% after the world’s largest soda maker raised its full-year sales forecast, as demand for its beverages rebounds due to re-opening of theaters, restaurants and stadiums.
Analysts expect annual S&P earnings growth of 72.9% for the April-June period, a significant improvement over the 54% growth seen at the beginning of the quarter, according to Refinitiv data.
Market participants are also closely watching the second-quarter earnings season to justify sky-high valuations at which the market trades right now.
For the year so far, the benchmark S&P 500 index has gained 15.1% on optimism about a stronger recovery due to vaccinations and favorable monetary policy.
Energy stocks Chevron Corp, Exxon Mobil, Schlumberger NV, Occidental Petroleum, Marathon Oil, and Halliburton climbed between 1.1% and 2.9%, tracking higher oil prices. [O/R]
United Airlines rose 1.6%, after its revenue quadrupled from a year ago and topped estimates with a strong domestic travel rebound.
Rivals American Airlines and Southwest Airlines added 0.8% and 1.4%, respectively, ahead of their results on Thursday.
Rate-sensitive lenders Morgan Stanley, Wells Fargo & Co, Citigroup, Goldman Sachs, Bank of America Corp, and JPMorgan & Chase were up between 0.3% and 1.2%. [US/]
At 6:47 a.m. ET, Dow e-minis were up 173 points, or 0.5%, S&P 500 e-minis were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis were up 6.25 points, or 0.04%.
Chipotle Mexican Grill Inc jumped 5.3% as brokerages raised their price targets on the burrito chain’s stock after it beat estimates for earnings and comparable quarterly sales.
Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; editing by Uttaresh.V
Source: Reuters