After ending the previous session sharply higher, the major U.S. stock indexes may move in opposite directions in early trading on Wednesday. The major index futures are currently pointing to a mixed open, with the Dow futures up by 131 points but the Nasdaq futures down by 22 points.
The Dow may benefit from early strength among big-name companies such as Coca-Cola (KO), Verizon (VZ) and Johnson & Johnson (JNJ).
Coca-Cola, Verizon and Johnson & Johnson, which are all Dow components, are all moving higher in pre-market trading after reporting better than expected quarterly results.
Shares of Coca-Cola and Verizon are seeing particularly notable strength after the beverage and telecom giants also raised their full-year guidance.
United Airlines (UAL) and Harley-Davidson (HOG) are among other well-known companies likely to see initial strength after reporting quarterly results that exceeded analyst estimates.
On the other hand, a drop by shares of Netflix (NFLX) may weigh on the tech-heavy Nasdaq, with the streaming giant moving lower in pre-market trading.
Netflix is seeing pre-market weakness after reporting weaker than expected second quarter earnings and forecasting subscriber growth in the current quarter below analyst estimates.
Overall trading activity may be somewhat subdued, however, as traders may take a breather following the volatility seen over the past few sessions.
Stocks moved sharply higher over the course of the trading day on Tuesday, regaining ground following the sell-off seen on Monday. The major averages all showed strong moves back to the upside but remain well off their record highs.
The major averages pulled back off their best levels going into the close but held on to strong gains. The Dow spiked 549.95 points or 1.6 percent to 34,511.99, the Nasdaq surged up 223.89 points or 1.6 percent to 14,498.88 and the S&P 500 jumped 64.57 points or 1.5 percent to 4,323.06.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index climbed by 0.6 percent, while Hong Kong’s Hang Seng Index edged down by 0.1 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has surged up by 1.5 percent, the French CAC 40 Index is up by 1.2 percent and the German DAX Index is up by 0.7 percent.
In commodities trading, crude oil futures are jumping $1.29 to $68.49 a barrel after climbing $1 to $67.42 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,800.90, down $10.50 compared to the previous session’s close of $1,811.40. On Tuesday, gold rose $2.20.
On the currency front, the U.S. dollar is trading at 110.18 yen compared to the 109.85 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1766 compared to yesterday’s $1.1781.
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