Futures of U.S. stocks declined mostly as investors waited for a day unloaded on profit reports and a Federal Reserve meeting.
Futures tied to the broad S&P 500 index fell 0.8% and Dow Jones Industrial Average futures fell 0.7%. Futures tied to the Nasdaq-100, a very heavy technology, fell 0.1%.
Investors were gearing up for one of the busiest days of the quarterly earnings season, with Boeing expected to report ahead of the opening bell. Earnings from technology giants Apple,
Facebook and Tesla are due to show up right after the market closes. Investors are eager to see how these companies have fared during a quarter marked by continued closures and orders to stay home.
“The bar for technology stocks is quite high because we were still stuck and yet they seem to be doing well in relation to these higher expectations,” said Hani Redha, portfolio manager at PineBridge Investments.
Shares of Microsoft gained 3.5% ahead of the opening bell after the company on Tuesday recorded record quarterly sales. Its shares closed at a new high on Tuesday.
Walgreens Boots Alliance rose 5.7% in pre-market trade after the pharmacy chain appointed Rosalind Brewer, chief operating officer of Starbucks, as its next CEO.
The gains have pleased the market so far and investors continue to bet on financial support from the Federal Reserve and a possible stimulus plan from the Biden administration. On Tuesday, the S&P 500 hit a new intraday high before falling in the final minutes of trading.
“The Fed and Biden’s new stimulus plans: it’s all a very positive backdrop for the equity market,” said Brian Walsh, Jr., portfolio manager at financial group Walsh & Nicholson. “They’re saying we won’t let markets fail right now, and with bond yields as low as they are, there’s nowhere else to go.”
The Fed is expected to leave monetary policy unchanged, and President Jerome Powell is likely to underscore the bank’s commitment to supporting the economy with low interest rates and buying bonds in the foreseeable future. Mr. Powell is likely to face questions about the health of the economy and how long the Fed’s stimulus measures will be maintained.
GameStop rose more than 90% in premarket trading, as day traders, driven by social media, seemed willing to accumulate retail for another day. Shares rose 113% on Tuesday, amid a battle between individual investors and hedge funds that are shortening shares. After closing markets on Tuesday, Tesla CEO Elon Musk tweeted “Gamestonk !!” in an apparent reference to frantic trade.
Data on durable goods orders will be released at 8:30 am ET. The figures are expected to show an eighth consecutive monthly increase in orders, highlighting manufacturing resistance during the pandemic.
In commodity markets, Brent crude, the international benchmark for oil, rose 0.7% to $ 56.01 a barrel. Gold prices fell 0.4% to $ 1,844.30 a troy ounce.
Abroad, the Stoxx Europe 600 pancontinental fell 0.5%, while in Asia stock indexes mixed. The Japanese Nikkei 225 rose 0.3%, the Hong Kong Hang Seng fell 0.3%, while in mainland China, the Shanghai Composite rose 0.1%.
On Tuesday, the S&P 500 hit a new intraday high before falling in the final minutes of trading.
Photo:
Nicole Pereira / Associated Press
Write to Will Horner to [email protected]
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