Stock futures rose early Wednesday and the market should resume its rally in February as investors valued a new set of corporate earnings.
Dow Jones Industrial Average futures implied an opening profit of more than 100 points. S&P 500 futures gained 0.4% and Nasdaq 100 futures also rose 0.4%.
Coca-Cola surged more than 1% after the company beat Wall Street’s fourth quarter earnings estimates with cost-cutting efforts.
Better-than-expected profits from Twitter, Lyft, Cisco Systems, Mattel, and Yelp have also lifted sentiment on Wall Street. Lyft reported signs of recovery from the Covid-19 pandemic.
Traders will also be closely watching the speech by Federal Reserve Chairman Jerome Powell outside the New York Business Club at 2:00 p.m.
On Tuesday, the 30-share Dow and S&P 500 fell slightly to a six-day winning streak. The tech-heavy Nasdaq Composite hit another record high.
The Russell 2000 small cap benchmark rose 0.4% to an all-time high, bringing the index’s weekly gain to nearly 11%. Many investors see small caps as a substitute for an economic recovery from the pandemic.
Wall Street had a strong February with the S&P 500 up more than 5%. Investors remained optimistic about the additional Covid-19 stimulus. The House Democrats revealed the details of a relief proposal that included direct checks worth $ 1,400 with faster exit options than previous bills.
“The virus continues to mutate, vaccines are taking longer than expected to spread and as a result, herd immunity appears to be taking much longer,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. “On the upside, massive fiscal stimulus and a highly accommodative Federal Reserve should drive stocks up while we wait for these setbacks to be resolved.”
The consumer price index report is due to be released at 8:30 a.m. CET. According to the Dow Jones, economists expect the index to rise by 0.3%, a measure of inflation or a year-on-year increase of 1.5%. Excluding food and energy, an increase of 0.1% is forecast.
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