Stocks are likely to move to the upside in early trading on Wednesday, extending the rally seen over the course of 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 0.3 percent.
A largely positive reaction to the latest batch of earnings news from big-name companies may contribute to continued strength on Wall Street.
Shares of IBM Corp. (IBM) are seeing notable pre-market strength after the tech giant reported first quarter results that exceeded analyst estimates on both the top and bottom lines.
Consumer products giant Procter & Gamble (PG) is also likely to move to the upside after reporting better than expected first quarter results and raising its full-year sales guidance.
On the other hand, shares of Netflix (NFLX) are moving sharply lower in pre-market trading after the streaming giant reported the loss of 200,000 subscribers during the first quarter.
Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of the Federal Reserve’s Beige Book this afternoon.
The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, may provide additional clues about the outlook for monetary policy.
Not long after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of March.
Existing home sales are expected to tumble by 3.7 percent to an annual rate of 5.80 million in March after plunging by 7.2 percent to a rate of 6.02 million in February.
Stocks moved sharply higher over the course of the trading session on Tuesday, regaining ground following recent weakness. The major averages initially showed a lack of direction but climbed firmly into positive territory as the day progressed.
The major averages reached new highs in the final hour of trading, ending the session near their best levels of the day. The Dow jumped 499.51 points or 1.5 percent to 34,911.20, the Nasdaq spiked 287.30 points or 2.2 percent to 13,619.66 and the S&P 500 surged 70.52 points or 1.6 percent to 4,462.21.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index advanced by 0.9 percent, while China’s Shanghai Composite Index slumped by 1.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has inched up by 0.1 percent, the German DAX Index is up by 1.1 percent and the French CAC 40 Index is up by 1.4 percent.
In commodities trading, crude oil futures are jumping $1.11 to $103.67 a barrel after plunging $5.65 to $102.56 a barrel a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,951.40, down $7.60 compared to the previous session’s close of $1,959. On Tuesday, gold tumbled $27.20.
On the currency front, the U.S. dollar is trading at 128.01 yen compared to the 128.91 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0826 compared to yesterday’s $1.0788.
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