Stock-index futures pushed higher on Wednesday, pointing to potentially more records for major indexes as Apple Inc. shares climbed in premarket on an upbeat forecast in its results released in the late session.
Investors are also awaiting the outcome of a Federal Open Market Committee meeting, and press conference with Federal Reserve Chairman Jerome Powell.
How are major indexes performing?
Dow Jones Industrial Average futures YMM9, +0.26% rose 66 points, or 0.3%, to 26,650, while S&P 500 futures ESM9, +0.26% climbed 8 points, or 0.3%, to 2,956.50. Nasdaq-100 futures NQM9, +0.67% led with a 52.75 point-rise, a gain of 0.7%, to 7,852.75.
On Tuesday, the Dow DJIA, +0.15% gained around 0.2% to 26,592.91, while the S&P 500 index SPX, +0.10% gained 2.8 points, or 0.1%, or to close at 2,945.83, well of its Tuesday low at 2,924.21. Meanwhile, The Nasdaq Composite Index NQM9, +0.67% fell 54.09 points, or 0.7%, to finish at 8,107.77, but off a low at 8,050.55.
The S&P 500 edged further into record territory, the Nasdaq pulled back from a record finish on Monday, while the Dow is 0.9% away from its record closing high, set on Oct. 3.
What’s driving the market?
An encouraging forecast and signals that the worst is over for its China business drove Apple AAPL, -1.93% shares 5% higher in premarket trading, putting the company on track to return to a market capitalization of $1 trillion. The iPhone maker’s latest results also beat expectations. Earnings news from the big tech group was proving a driver for overall stock markets on Wednesday.
First Take: Apple is optimistic, and it isn’t because of the iPhone
Investors were also absorbing a batch of results elsewhere, and will get updates from Humana Inc. HUM, -0.56% pharmacy chain CVS Health Corp. CVS, +0.72% and Taco Bell-operator Yum! Brands Inc. YUM, +0.57% while chip group Qualcomm Inc. QCOM, -1.28% social-gamer Zynga Inc. ZNGA, +2.35% wearables maker FitBit Inc. FIT, -2.04% and mobile payment group Square Inc. SQ, +0.14% will report after the close.
On the economic front, the Fed will announce the results of its monetary policy meeting at 2 p.m. Eastern Time, followed by a press conference with Chairman Powell at 2:30 p.m. Eastern.
Over the past six weeks, Fed officials have emphasized a need for patience, signaling they want to leave rates on hold until they are certain about the economic outlook. Many economists expect the Fed to remain on hold for some time, possibly through the end of 2020, while market participants have wagered on the potential for a rate cut.
Read: Powell faces tough test Wednesday as market is uneasy with his recent communication
The Fed is fully expected to remain on hold Wednesday, but Powell’s remarks will be closely watched for clues to policy makers’ thinking.
See: The case for the Fed to keep an interest-rate hike on the table revolves around financial stability
Also read: The Fed could lower an interest-rate target today. Don’t get too excited
President Donald Trump took to Twitter Tuesday in an apparent effort to jawbone the Fed into easing policy, calling on the central bank to cut rates and reinstitute quantitative easing.
Barron’s: Trump wants the Fed to cut interest rates by a full point. He should be happy it’s on hold
What are analysts saying?
“Global stock markets are edging higher ahead of the U.S. Federal Reserve’s rate decision. Despite President Trump’s calls for interest rate cuts, Fed chair Jerome Powell is widely expected to keep interest rates on hold,” said Mihir Kapadia, chief executive and founder of Sun Global Investments, in emailed comments. “With the global economy still a source of uncertainty for investors, many will be reassured by this more dovish sentiment.”
What else is on the economic calendar?
Private-sector employment data from ADP is due at 8:15 a.m. Eastern.
Markit’s manufacturing purchasing managers index for April is due at 9:45 a.m. Eastern, while the more closely watched Institute for Supply Management manufacturing index is scheduled for 10 a.m. Economists surveyed by MarketWatch forecast the ISM reading to fall to 54.7% in April from 55.3% a month earlier.
Data on construction spending is due at 10 a.m. Eastern.
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