U.S. stock futures advanced on Wednesday following Tuesday’s mixed close. Futures of major benchmark indices were higher.
Among the big banks that reported on Tuesday, surpassing analyst expectations were Wells Fargo & Co. (NYSE:WFC), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Goldman Sachs Group Inc. (NYSE:GS).
Investors are awaiting earnings results from Bank of America Corp. (NYSE:BAC), Morgan Stanley (NYSE:MS), and Abbott Laboratories (NYSE:ABT) today.
Meanwhile, the futures were rejoicing the comments from the Federal Reserve Chair Jerome Powell, who said that “downside risks to employment appear to have risen,” implying more rate cuts are on the cards.
The 10-year Treasury bond yielded 4.01% and the two-year bond was at 3.47%. The CME Group's FedWatch tool’s projections show markets pricing a 95.7% likelihood of the Federal Reserve cutting the current interest rates in its October meeting.
| Futures | Change (+/-) |
| Dow Jones | 0.41% |
| S&P 500 | 0.54% |
| Nasdaq 100 | 0.74% |
| Russell 2000 | 0.92% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.63% at $666.40, while the QQQ advanced 0.85% to $603.07, according to Benzinga Pro data.
Stocks In Focus
Bank of America
- Bank of America Corp. (NYSE:BAC) rose 0.76%, ahead of its earnings before the opening bell. Analysts estimate earnings of 95 cents per share on revenue of $27.50 billion.
- BAC maintained a stronger price trend over the short, medium, and long terms, with a moderate quality ranking, as per Benzinga’s Edge Stock Rankings. Additional performance details are available here.
Morgan Stanley
- Morgan Stanley (NYSE:MS) advanced 1.52% as analysts estimate earnings of $2.10 per share on revenue of $16.70 billion before the opening bell.
- Benzinga’s Edge Stock Rankings indicate that MS had a stronger price trend in the short, medium, and long terms, with a moderate growth ranking. Additional performance details are available here.
Abbott Laboratories
- Abbott Laboratories (NYSE:ABT) was 0.36% higher ahead of its earnings before the opening bell. Analysts estimate earnings of $1.30 per share on revenue of $11.40 billion.
- ABT maintained a stronger price trend over the short, medium, and long terms, with a moderate value ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
ASML Holding
- ASML Holding NV (NASDAQ:ASML) jumped 3.74% after reporting better-than-expected third-quarter bookings. The company said net bookings rose to €5.4 billion or $6.27 billion in the third quarter.
- Benzinga’s Edge Stock Rankings indicate that ASML maintains a stronger price trend over the short, medium, and long terms, with a robust quality ranking. Additional performance details are available here.
Papa John’s International
- Papa John’s International Inc. (NASDAQ:PZZA) shares surged 11.69% following reports that Apollo Global Management has submitted a new takeover bid. Apollo sent Papa John’s a fresh offer last week to take the pizza chain private at $64 per share, according to Reuters.
- PZZA maintained a stronger price trend over the short, medium, and long terms, with a moderate growth ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
Cues From Last Session
Industrials, consumer staples, and financials stocks recorded the biggest gains on Tuesday, leading most S&P 500 sectors to a positive close, though consumer discretionary and information technology stocks closed lower.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.76% | 22,521.70 |
| S&P 500 | -0.16% | 6,644.31 |
| Dow Jones | 0.44% | 46,270.46 |
| Russell 2000 | 1.38% | 2,495.50 |
Insights From Analysts
In his analysis, David Kelly, Chief Global Strategist at J.P. Morgan, outlines the steady deterioration of U.S. government finances, projecting the federal deficit to climb to $2.132 trillion, or 6.7% of GDP, in the current fiscal year.
This path is expected to push the total debt-to-GDP ratio above 102% within a year, a trend Kelly believes is unsustainable long-term.
While he notes that global bond markets still appear willing to lend to the U.S. government at relatively low rates, he addresses the key investor question of when the debt will become a major crisis.
He states that while America is “going broke slowly,” the risk that political choices could accelerate this process adds an important reason for investors to consider diversifying their portfolios with international stocks and alternative assets.
See Also: How to Trade Futures
Upcoming Economic Data
Here's what investors will be keeping an eye on Wednesday;
- October’s Empire State manufacturing survey will be out by 8:30 a.m. ET.
- Atlanta Fed President Raphael Bostic will speak at 12:10 p.m., Fed Governor Stephen Miran will speak at 12:30 p.m., Fed Governor Christopher Waller will speak at 1:00 p.m., and Fed Beige Book data will be released at 2:00 p.m. ET.
Commodities, Gold, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 0.02% to hover around $58.69 per barrel.
Gold Spot US Dollar rose 1.16% to hover around $4,190.16 per ounce. Its last record high stood at $4,218.32 per ounce. The U.S. Dollar Index spot was 0.19% lower at the 98.8540 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.63% higher at $112,658.11 per coin.
Asian markets closed higher on Wednesday as Australia's ASX 200, South Korea's Kospi, India’s NIFTY 50, Hong Kong's Hang Seng, China’s CSI 300, and Japan's Nikkei 225 fell. European markets were mixed in early trade.
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