Advertisment
U.S. stock futures rose in early trading Wednesday as investors readied for comments from the Federal Reserve later in the day.
Futures for Dow Jones Industrials vaulted 101 points, or 0.4%, early Wednesday, to 28,009.
Futures for the S&P 500 tacked on 14.5 points, or 0.4%, at 3,409.50.
Futures for the NASDAQ Composite increased 19 points, or 0.2%, to 11,469.25.
Better-than-expected earnings from FedEx and Adobe after the bell boosted sentiment. FedEx released a blowout quarter with earnings $2.18 per share above analyst estimates, fueled by the e-commerce boom. The shipping company rallied more than 9% in extended trading. Adobe jumped 2% after hours.
Wednesday marks the second day of the Federal Reserve policy’s meeting, the first since Chairman Jerome Powell unveiled a policy shift toward greater tolerance of inflation, effectively pledging to keep interest rates low for longer. Investors widely expect the central bank to maintain is downbeat stance on the economy.
The Federal Open Market Committee will provide its quarterly update on its estimates for Gross Domestic Product, unemployment and inflation. The central bank could provide clearer guidance on what it will take to raise rates in the future.
One of the hottest initial public offerings of 2020 will open for trading on Wednesday. Data storage software company Snowflake is priced at 30 times forward revenue and even got a rare vote of confidence from Berkshire Hathaway. Snowflake expects to go public at a share price between $100 and $110, according to an updated S-1 filing from Monday.
August retail sales data will be released at 8:30 a.m. on Wednesday. Analysts are expecting an increase of 1.1%, compared to July’s 1.2% rise.
Overseas, in Japan, the Nikkei 225 inched up 0.1% Wednesday, while in Hong Kong, the Hang Seng index shed more than seven points.
Oil prices moved higher 83 cents to $39.11 U.S. a barrel.
Gold prices jumped $7.40 to $1,973.60.
