By Alexandra Scaggs
U.S. stock futures rose Wednesday, with technology shares
rebounding from steep losses after a strong quarterly report from
Apple Inc.
Dow Jones Industrial Average futures rose 36 points, or 0.2%, to
17414. S&P 500 futures gained eight points, or 0.4%, to 2038,
and Nasdaq-100 futures jumped 44 points, or 1.1%, to 4222. Changes
in stock futures don't always accurately predict moves in the stock
market after the opening bell.
Investors were also looking ahead to an afternoon statement from
the Federal Reserve's policy-setting committee, as its two-day
meeting wraps up Wednesday. The central bank isn't expected to make
any policy changes, though investors will be looking for any clues
about when officials could raise interest rates, a move widely
expected this year.
Tech stocks looked set to lead markets higher. The gains follow
Tuesday's 3.3% slide in the S&P 500 tech sector, on worries
about the effects of a strengthening U.S. dollar and weak
international demand. On Wednesday, Apple Inc. rallied 7.6% in
premarket trading, after the company reported that "staggering"
demand for iPhones helped the company beat even the most bullish
Wall Street forecasts in the latest quarter.
"Apple put up very strong numbers...[which is] good following a
day that was a relative bloodbath," said Brian Fenske, head of
sales trading at ITG. Still, it didn't fully relieve investor
concerns about tech stocks after a disappointing earnings report
from Microsoft sank that stock more than 9% Tuesday.
Yahoo Inc. gained as well, rising 5.4% premarket after
announcing it would spin off tax-free its holdings in Alibaba Group
Holding Ltd. Its per-share earnings beat analyst forecasts.
In other earnings news, a pair of Dow components rose after
better-than-expected reports.
Boeing Co. jumped 3.4% after it posted better-than-expected
quarterly results. But the company gave a weak outlook for profit
in 2015, citing the possibility that the dive in oil prices could
damage demand for its fuel-efficient planes.
AT&T Inc. rose 1.4% in early trading after fourth-quarter
earnings and sales narrowly beat Wall Street's expectations. But
the telecommunications company's results indicated some strain from
higher competition among carriers.
The early gains in the U.S. came as stocks in some indebted
European countries fell. Greek stocks sank as investors fretted
that the recent election of an antiausterity party could lead to
less financial support from other European countries. Italy's IBEX
35 dropped 1.2%. Germany's DAX Index gained 0.3%.
In other markets, gold futures slipped 0.1% to $1290.10.
Treasury prices rose, pushing the yield on the 10-year note down to
1.824%. Crude-oil futures fell 1.9% to $45.34 a barrel.
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