U.S. stock index futures rose on Wednesday as Wall Street cheered strong quarterly results from tech giant Apple while while awaiting the Federal Reserve’s latest monetary policy decision.
Around 7:30 a.m. ET, Dow Jones Industrial Average futures traded 72 points higher, indicating a gain of 67 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a higher open.
Apple reported Tuesday evening earnings per share and revenue for the previous quarter that topped analyst expectations, sending the stock up more than 4% in the premarket. The company also issued better-than-expected revenue guidance for the fourth quarter.
“Overall, when we consider AAPL’s valuation with the company’s fundamental levers for further EPS upside, we see a balanced reward profile relative to the risks,” said Jeriel Ong, an analyst at Deutsche Bank, in a note. Ong added Apple’s “stabilizing” trends will likely give investors more confidence.
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General Electric shares also rose 4% before the bell on better-than-expected earnings. The company’s outlook for industrial cash flow also topped estimates.
Nearly 60% of S&P 500 companies have reported earnings so far. Of those companies, 76% have posted stronger-than-forecast quarterly profits, according to FactSet.
The U.S. central bank is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. Market expectations point to a quarter-point rate cut.
The Fed is set to deliver its decision at 2 p.m. ET, with Chairman Jerome Powell scheduled to hold a press conference at 2:30 p.m. ET.
The projected move from the Fed has supported risk asset prices worldwide in recent days. However, trade war concerns have resurfaced to cap gains.
President Donald Trump said in a series of tweets Tuesday that Beijing is not keeping its promise of buying more U.S. agricultural products, decreasing hope that the world’s two largest economies could soon reach a trade deal. China insists it has bought U.S. agricultural products.
Washington and Beijing agreed to restart trade talks late last month after they fell through in May. The two countries have been engaged in a trade war since last year. In that time, they’ve slapped tariffs on billions of dollars’ worth of each other’s goods.
On the data front, ADP payrolls for July will be released at around 8:15 a.m. ET. Employment cost index figures for the second quarter and Chicago Purchasing Manager Index (PMI) data for July will follow slightly later in the session.
Source: cnbc.com | Original Link