Stock-index futures pointed to a mixed start for Wall Street Wednesday morning, recovering from early weakness after fresh earnings numbers helped buoy confidence and overshadow concerns about rising interest rates and signs of a global economic slowdown.
Upbeat results from Boeing Co. were credited with lifting Dow futures into positive territory.
Volatility is expected to remain, as Wall Street readies to digest further earnings data in a busy week for quarterly corporate results.
How did major benchmarks fare?
Futures for the Dow Jones Industrial Average YMZ8, +0.12% were trading up 66 points, or 0.3%, to 25,305, those for the S&P 500 index ESZ8, -0.19% were down 2 points at 2,744.5, while the Nasdaq-100 futures NQZ8, -0.17% were up 3.5 points to 7,143.
On Tuesday, the Dow DJIA, -0.50% closed 125.98 points lower, a fall of 0.5%, at 25,191.43 after dropping nearly 550 points at its session low. The S&P 500 SPX, -0.55% shed 15.19 points, or 0.6%, to 2,740.69, while the Nasdaq Composite Index COMP, -0.42% slid 31.09 points, or 0.4%, to 7,437.54.
The S&P 500 has fallen for five straight session and is off nearly 6% so far in October, the Dow is hoping to reverse a two-day skid, and has declined 4.8% thus far this month. Meanwhile, the Nasdaq, which has experienced a particularly volatile stretch among its peer benchmarks, is down 7.6% in October and continues to flirt with correction territory, defined as a drop of at least 10% from a recent peak. The technology and internet-heavy index is down 8.3% from its Aug. 29 all-time high.
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What drove the market?
In a busy week for earnings, some 150 companies are slated to report, including several megacap companies. Investors are seeking the degree to which higher interest rates are impacting the economy, as the Federal Reserve has indicated it will continue to tighten monetary policy by year’s end.
China’s recent stock market troubles and political drama in Europe surrounding Italy’s budget row with the European Union and Britain’s efforts to exit that trade bloc also have combined to hurt investor sentiment.
Wednesday’s early decline in futures come even as Europe’s complexion appeared to look a little better and Beijing stocks saw muted action, but a round of earnings is likely to offer more clarity for investors fretting about the U. S.economic outlook.
Read: Italy is ‘the No. 1 risk factor in the fourth quarter’ for European investments
What were analysts saying?
“U.S. markets look set to open slightly lower after their late recovery off the lows with company earnings once again set to be the key driving force. Yesterday’s sell off on the back of the Caterpillar guidance was probably a little excessive, given that it was merely stating the obvious,” said Michael Hewson, chief market analyst at CMC Markets UK, in a Wednesday note.
Today’s focus will again return to the latest numbers from Ford, Microsoft and Visa.
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Which data and Fed speakers are in focus?
Markit flash readings for manufacturing and services for October are both due at 9: 45 a.m. Eastern Time A report on new home sales for September, with an annualized pace of 620,00 new homes expected, is slated for 10 a.m. The Federal Reserve’s Beige Book is due at 2 p.m. Among Fed speakers, Cleveland Fed President Loretta Mester will be featured in a discussion at 1 p.m., while Federal Reserve Board Gov. Lael Brainard is slated to talk at a 7 p.m.Which stocks were in focus?
Dow futures staged a recovery before the bell Wednesday, after Boeing Co. BA, -1.67% reported earnings and revenue beyond Street expectations. Shares were up 4.9% in premarket action, a rise that would add 101 points to the blue-chip gauge.
Texas Instruments Inc.’s stock TXN, +0.53% was 6.9% lower in premarket after releasing third-quarter results after the close on Tuesday.
Shares of United Parcel Service Inc. UPS, -1.21% dropped 2.9% in light premarket trade Wednesday, after the package delivery service met third-quarter profit expectations, but came up a bit shy on revenue.
Shares of AT&T Inc. T, +1.07% slipped in premarket trade Wednesday, after the telecommunications and media giant reported third-quarter earnings that missed expectations but sales that beat.
Visa Inc. V, -1.08% and Ford Motor Co. F, +2.14% will be in the spotlight, set to report quarterly results before the opening bell. Microsoft Corp. MSFT, -1.40% is due to report after the close.
Read: Microsoft earnings: The quiet drive toward a $1 trillion market cap
What were other markets doing?
The Shanghai Composite Index SHCOMP, +0.33% rose 0.3% on Wednesday, a day after falling 2.3% on Tuesday, while Shenzhen Composite Index 399106, -0.24% slipped by 0.2%.
European stocks were modestly higher, with the FTSE 100 FTSE, +1.61% up 0.4% and the Stoxx Europe 600 Index SXXP, +1.19% gaining 0.4%. Both indexes fell sharply on Tuesday.
Gold prices GCZ8, -0.44% slipped about 0.1% lower after settling higher in the previous session, while oil futures US:CLX8 edged lower.
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