Wall Street Likely To Open Higher On Earnings News
Higher U.S. futures and fairly encouraging earnings updates from top companies point to a positive start for U.S. stocks on Wednesday.
The Dow futures are up 0.7%, while the S&P and Nasdaq futures are higher by 0.48% and 0.26%, respectively.
In earnings news, Microsoft (MS) reported earnings per share of $2.22 for the third-quarter, compared to analysts’ expectations of $2.19. The company has forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services.
Alphabet, Google’s parent company missed expectations for its first quarterly revenue as the Ukraine war weighed on YouTube ad sales.
Harley-Davidson (HOG) said its came in at $222.50 million, or $1.45 per share in the first quarter, compared with $259.14 million, or $1.68 per share, in last year’s first quarter.
Automatic Data Processing Inc. (ADP) reported third quarter earnings of $928.5 million, or $2.21 per share. This compares with $810.7 million, or $1.90 per share, in last year’s third quarter.
Boeing (BA) reported a loss of $2.75 a share against an expected loss of 27 cents a share, as higher costs on both commercial and defence aircraft weighed on revenues.
Meta Platforms (FB) and T-Mobile (TMUS) are scheduled to release their earnings updates today.
On the data front, a report on pending home sales is due out at 10 AM ET.
U.S. Energy Information Administration (EIA) is scheduled to released its weekly crude inventory data at 10:30 AM ET.
U.S. stocks tumbled on Tuesday, with the tech-heavy Nasdaq leading the market down and plunging to its lowest closing level in over a year. The Nasdaq plummeted 4%. The Dow and the S&P 500, which shed 2.4% and 2.8%, respectively, dropped to their one-month lows.
In overseas trading, Asian markets ended on a mixed note on Wednesday. While the Chinese market recovered, the sentiment in most of the other markets in the region remained subdued.
European stocks are slightly positive despite persisting concerns over slowing global growth. Investors are largely reacting to quarterly earnings updates.
In commodities trading, West Texas Intermediate crude oil futures are up $0.20 or 0.2% at $101.90 a barrel. Gold futures are lower by $5.60 or 0.31% at $1,898.50 an ounce.
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