U.S. stock index futures rose on Wednesday as solid earnings from technology giant Apple along with financials Morgan Stanley and Wells Fargo eased growth concerns.
Apple Inc (AAPL) gained 3.4 percent to $260.51 in premarket trade after unusually upbeat revenue forecast calmed concerns that iPhone 4 antenna problems would dampen sales. Apple was a bright spot after a string of disappointing revenue results, including ones from International Business Machines Corp (IBM) and chipmaker Texas Instruments Inc (TXN)
Investors closely watched top-line numbers for signs of growth in the economy as recent data has signaled a slowdown. Apple offered some hope that it is not an all-or-nothing situation, that growth is possible.
S&P 500 futures gained 4.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 29 points, and Nasdaq 100 futures advanced 15.5 points.
Futures extended gains after Morgan Stanley (MS) and Wells Fargo & Co (WFC) gained posted quarterly results. Morgan Stanley advanced 2.7 percent to $25.90, while Wells Fargo climbed 3.2 percent to $26.75 premarket.
Diversified U.S. manufacturer United Technologies Corp (UTX) reported a 13.7 percent rise in profit and raised its full-year forecast, saying demand and margins improved.
Fellow Dow component Coca-Cola Co (KO) gained 1.4 percent to $54 after the soft-drink maker reported higher quarterly profit on Wednesday, helped by increased revenue and sales volume.
U.S. Federal Reserve Chairman Ben Bernanke, in testimony before Congress at 2 p.m. EDT [1800 GMT], may provide a fresh outlook on the health of the world’s biggest economy as well as policy signals from the central bank.
Visit www.wallstreetgrand.com and get our weekly FREE investor newsletter and read our daily financial blog.
Disclaimer:
Wall Street Grand LLC has not been compensated for this press release in any way. Wall Street Grand does not intend to be compensated for this press release by any of the companies mentioned in this press release. Visit www.wallstreetgrand.com to read our full legal disclaimer.
