U.S. stocks appear poised to rebound Wednesday morning, with index futures slightly higher amid a wave of strong corporate earnings reports that are lifting investor sentiment after Tuesday’s pullback.
A series of upbeat quarterly results is helping shift market momentum. McDonald’s (NYSE:MCD) is leading the charge, surging 4.0% in premarket trading after its second-quarter earnings and revenue both came in above expectations.
Shopify (NASDAQ:SHOP) is also trading sharply higher after beating revenue forecasts and offering optimistic guidance for the third quarter. Likewise, Disney (NYSE:DIS) is gaining ground following better-than-expected earnings for its fiscal third quarter.
However, some tech names are under pressure. Super Micro Computer (NASDAQ:SMCI) fell in early trading after issuing disappointing guidance for the first quarter and missing on fourth-quarter results. Snap (NYSE:SNAP) is also trading lower following weaker-than-expected second-quarter revenue.
With no major economic releases on the calendar, overall market volume may be lighter as investors digest corporate results and look ahead to the next round of macro data.
Tuesday’s session ended with a pullback, snapping a brief rally that started the week. All three major indexes finished in negative territory after retreating from early gains.
The Nasdaq dropped 137.03 points, or 0.7%, closing at 20,916.55. The S&P 500 shed 30.75 points, or 0.5%, to 6,299.19, while the Dow slipped 61.90 points, or 0.1%, to 44,111.74.
One factor weighing on sentiment was renewed trade rhetoric from former President Donald Trump. In an interview with CNBC’s Squawk Box, Trump said he plans to impose new tariffs on semiconductors and chips “because we want them made in the United States.”
He also said pharmaceutical imports could face tariffs “as high as 250 percent.”
Economic data also added to the cautious tone. The Institute for Supply Management reported a slight slowdown in the services sector for July. Its PMI index dropped to 50.1, just barely indicating growth, down from 50.8 in June and short of economist projections for 51.5.
Still, some companies defied the market’s decline. Shares of Palantir (NYSE:PLTR) jumped 7.9% after the company reported a surge in revenue, crediting strong demand for its AI offerings. The company said its sales jumped almost 50 percent in the second quarter amid robust demand for artificial intelligence services.
In sector performance, oil services stocks led the way, with the Philadelphia Oil Service Index climbing 3.5%. Gold miners also performed well as gold prices edged higher, pushing the NYSE Arca Gold Bugs Index up 2.9%.
Transportation and housing stocks showed strength too, while utilities and semiconductor shares lagged behind.
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