By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures pushed higher on
Wednesday as investors focused on earnings news as well as a number
of economic releases.
Gains for Apple Inc., IBM Corp. and Intel Corp. were helping the
tech sector higher. U.S. wholesale prices resume upward trend in
June after a surprise drop in May.
Testimony from Federal Reserve Chairwoman Janet Yellen continues
for a second day, while there are several items on the economic
calendar, including a home-builders' index and the Fed's Beige
book.
Futures for the Dow Jones Industrial Average (DJU4) rose 63
points, or 0.4%, to 17,051, while those for the S&P 500 index
(SPU4) gained 8.6 points, or 0.4%, to 1,976.60. Futures for the
Nasdaq 100 index (NDU4) added 25 points, or 0.7%, to 3,937.75.
Bank of America Corp. (BAC) reported earnings of 19 cents, which
included 22 cents a share in litigation expenses. Revenue came in
at $21.96 billion. The bank was expected to earn 27 cents a share
on revenue of $21.65 billion. Banks have been surprising on the
upside, with better-than-expected results from J.P. Morgan Chase
& Co. and Goldman Sachs Group Inc. on Tuesday. Shares of Bank
of America rose, then fell, in premarket trading.
Intel Corp.(INTC) jumped 5% in premarket after the technology
maker reported market-pleasing results late Tuesday, while
disappointment over Yahoo Inc.'s(YHOO) results left those shares
down more than 3.5%.
Meanwhile, shares of Apple Inc. (AAPL) and IBM Corp. (IBM) rose
2% each, after the two technology companies said late Tuesday that
they are teaming up to create business apps and sell iPhones and
iPads to Big Blue's corporate customers.
Time Warner Inc. (TWX) shares jumped 13% in premarket after CNBC
reported that the media company has rejected an $80 billion buyout
offer from 21st Century Fox (NWS).
Online-auction provider eBay Inc.(EBAY) reports after the close
of markets on Wednesday.
The producer price index increased a seasonally adjusted 0.4% in
June after a 0.2% decline in May, the Labor Department said.
Economists surveyed by MarketWatch had predicted a 0.3% increase in
the PPI. Still to come is industrial production data, due out at
9:15 a.m. Eastern Time and a home-builders' index, to be released
at 10 a.m. Eastern Time.
Federal Reserve Chairwoman Janet Yellen enters her second day of
testimony to Congress on the economy. That kicks off at around 10
a.m. Eastern Time. On Tuesday, Yellen said interest rates could
rise sooner rather than later if employment gains continue.
Dallas Fed President Richard Fisher, who is a voting member of
the Fed's policy committee this year, will give a speech on
monetary policy at University of Southern California at noon
Eastern Time. Also, the Fed will release its Beige Book report on
economic conditions at 2 p.m. Eastern.
The Dow industrials (DJI) ended 5.3 points higher at 17,060.75
on Tuesday, after setting an intraday record in the morning. Wall
Street was weighed by sharp falls in momentum stocks on the Nasdaq
Composite (RIXF) and Russell 2000 (RUT). A reference to valuations
of social media and biotech stocks, in a separate Fed monetary
policy report submitted to Congress along with Yellen's testimony,
hit those indexes.
No matter how volatile the session, the winning streak appears
unrelenting for stocks, said Naeem Aslam, chief market analyst at
Ava Trade, in emailed comments. "Traders are determined to push the
markets higher to get another record high in the U.S., and ...
similar momentum is set to continue today," he said.
Across other markets, Asian stocks closed mixed, but with most
major indexes sticking to slim moves. China's economic growth rate
hit 7.5% in the April-June quarter, data showed Wednesday. That
beat expectations, and triggered discussion about whether the
government will offer up more stimulus.
European stocks got a boost from that Chinese data, which lifted
resource stocks. It also lifted oil prices, with crude for August
delivery (CLQ4) trading at $100.77 a barrel. Gold for August
delivery (GCQ4) was mostly flat, and the dollar (DXY) pushed higher
on interest-rate-timing comments by Yellen.
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