Earnings, Fed in Focus as Wall Street Heads to Higher Open
By Investors Hub
The major U.S. index futures are pointing to a higher opening on Thursday, with stocks poised to add to the modest gains posted in the previous session.
A positive reaction to the latest batch of earnings news may contribute to early strength on Wall Street, as companies such as Facebook (FB), Twitter (TWTR) and Procter & Gamble (PG) reported better than expected quarterly results.
Buying interest may also be generated in reaction to a report from the Commerce Department showing a substantial increase in durable goods orders in the month of June.
Stocks finished higher on Wednesday, with soaring shares of Boeing (BA) sending the Dow Jones Industrial Average to a new record high.
All three equity benchmarks finished at all-time highs, with the S&P 500 index inching up 0.70 points or less than a tenth of a percent to 2,477.83, and the Nasdaq edging up 10.57 points or 0.2 percent to 6,422.75. The Dow climbed 97.58 points or 0.5 percent to 21,711.01.
Boeing reported a turnaround to a profit in the second quarter as lower revenues were more than offset by a decline in costs and expenses. Adjusted earnings per share for the quarter beat analysts’ expectations. The company also raised its outlook.
The Federal Reserve failed to offer specifics about its plan to unwind its bloated balance sheet.
The Federal Open Market Committee voted to maintain its key interest rate at a 1.00 to 1.25 percent range but vowed to raise rates once by year’s end.
In lieu of hiking rates this summer or fall, the Fed will start to sell its $4.25 trillion holdings of Treasuries and mortgage-related debt “relatively soon,” they said.
U.S. new home sales were robust in June, roughly in line with estimates, the Commerce Department said Wednesday.
New-home sales were at a 610,000 pace in June, up 0.8 percent from the downwardly revised May reading. Economists expected home sales of 620,000 in June. The May reading was lowered to 605,000.