© Reuters. FILE PHOTO: People wearing face masks walk by the New York Stock Exchange (NYSE) during the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly
By Devik Jain
(Reuters) – U.S. stock index futures rose on Wednesday, helped by upbeat quarterly results and forecasts from companies such as Johnson & Johnson (NYSE:) and Harley Davidson, while shares linked to economic growth also climbed.
Johnson & Johnson gained 1.2% in premarket trading after the drugmaker forecast upbeat 2021 earnings, while Harley-Davidson Inc (NYSE:) added 3.5% as it reported a second straight quarterly profit.
Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak, as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.
Netflix Inc (NASDAQ:), the first to report earnings from the FAANG group, said it would make a deeper dive into video games as the movie and TV streaming service projected weak subscriber growth. Its shares fell 0.3%.
Coca-Cola (NYSE:) Co gained 3% after the world’s largest soda maker raised its full-year sales forecast, as demand for its beverages rebounds due to re-opening of theaters, restaurants and stadiums.
Analysts expect annual S&P earnings growth of 72.9% for the April-June period, a significant improvement over the 54% growth seen at the beginning of the quarter, according to Refinitiv data.
Market participants are also closely watching the second-quarter earnings season to justify sky-high valuations at which the market trades right now.
For the year so far, the benchmark has gained 15.1% on optimism about a stronger recovery due to vaccinations and favorable monetary policy.
Energy stocks Chevron Corp (NYSE:), Exxon Mobil (NYSE:), Schlumberger NV (NYSE:), Occidental Petroleum (NYSE:), Marathon Oil (NYSE:), and Halliburton (NYSE:) climbed between 1.1% and 2.9%, tracking higher oil prices. [O/R]
United Airlines rose 1.6%, after its revenue quadrupled from a year ago and topped estimates with a strong domestic travel rebound.
Rivals American Airlines (NASDAQ:) and Southwest Airlines (NYSE:) added 0.8% and 1.4%, respectively, ahead of their results on Thursday.
Rate-sensitive lenders Morgan Stanley (NYSE:), Wells Fargo (NYSE:) & Co, Citigroup (NYSE:), Goldman Sachs (NYSE:), Bank of America Corp (NYSE:), and JPMorgan (NYSE:) & Chase were up between 0.3% and 1.2%. [US/]
At 6:47 a.m. ET, were up 173 points, or 0.5%, were up 15.25 points, or 0.35%, and were up 6.25 points, or 0.04%.
Chipotle Mexican Grill Inc (NYSE:) jumped 5.3% as brokerages raised their price targets on the burrito chain’s stock after it beat estimates for earnings and comparable quarterly sales.
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