The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to move to the upside following the lackluster performance seen in the previous session.
Technology stocks may help lead an early advance on Wall Street, as reflected by the 0.9 percent jump by the Nasdaq 100 futures.
The upward momentum in the tech sector comes as shares of Netflix (NFLX) are surging by 10.6 percent in pre-market trading.
Netflix is rallying after the streaming giant reported better than expected fourth quarter revenues on stronger than expected subscriber growth.
The strong results from Netflix may add to optimism about earnings from other tech companies, with IBM Corp. (IBM) among the companies releasing their quarter results after the close of today’s trading.
At the same time, shares of Texas Instruments (TXN) are moving sharply lower in pre-market trading after the chipmaker reported fourth quarter revenues that missed analyst estimates and provided disappointing first quarter guidance.
Telecom giant AT&T (T) may also move to the downside after reporting weaker than expected first quarter earnings and forecasting 2024 earnings below analyst estimates.
Stocks turned in a relatively lackluster performance during trading on Tuesday, with the major averages bouncing back and forth across the unchanged after ending Monday’s trading modestly higher. Despite the choppy trading, the S&P 500 reached a new record closing high.
The major averages eventually ended the session narrowly mixed. While the Dow dipped 96.36 points or 0.3 percent to 37,905.45, the Nasdaq climbed 65.66 points or 0.4 percent to 15,425.94 and the S&P 500 rose 14.17 points or 0.3 percent to 4,864.60.
The choppy trading on Wall Street partly reflected a mixed reaction to the latest earnings news from several big-name companies.
The Dow pulled back off yesterday’s record closing high amid a steep drop by shares of 3M (MMM), with the conglomerate plunging by 11.0 percent after reporting better than expected fourth quarter earnings but providing disappointing guidance.
Healthcare giant Johnson & Johnson (JNJ) also moved to the downside despite reporting better than expected fourth quarter results.
Meanwhile, shares of Verizon (VZ) moved sharply higher after the telecom giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines.
Consumer products giant Procter & Gamble (PG) also surged after reporting better than expected fiscal second quarter earnings.
Traders may also have been reluctant to make significant moves ahead of the release of several key U.S. economic reports in the coming days.
Most of the major sectors ended the day showing only modest moves on the day, contributing to the lackluster close by the broader markets.
Airline stocks showed a substantial move to the upside, however, with the NYSE Arca Airline Index soaring by 3.0 percent.
United Airlines (UAL) helped lead the sector higher, spiking by 5.3 percent after reporting fourth quarter results that exceeded analyst estimates on both the top and bottom lines.
Gold stocks also turned in a strong performance amid a modest increase by the price of the precious metal, as reflected by the 2.3 percent jump by the NYSE Arca Gold Bugs Index.
On the other hand, housing stocks moved sharply lower on the day, dragging the Philadelphia Housing Sector Index down by 4.4 percent.
Shares of D.R. Horton (DHI) plunged by 9.2 percent after the homebuilder reported fiscal first quarter earnings below analyst estimates.