Oil Stabilizes, Futures Soar - InvestingChannel

Oil Stabilizes, Futures Soar



U.S. stock futures pointed to gains at the open on Wednesday, following recent weakness in markets aggravated by oil’s massive decline as crude prices attempted to stabilize in early trading.

Futures for Dow Jones Industrials recovered 235 points, or 1%, early Wednesday to 23,164.

Futures for the S&P 500 gained 26 points, or 1%, at 2,758

Futures for the NASDAQ Composite vaulted 81.75 points, on 1%, to 8,513.50.

Investors also digested another batch of corporate earnings showing the economic fallout of the virus on Tuesday. Shares of IBM fell 3% after reporting a decline in revenue. Coca-Cola fell 2.5% as the beverage company said global volumes plunged 25% due to the coronavirus pandemic.

Netflix and Chipotle Mexican Grill both rose in extended trading following their quarterly earnings reports. Netflix reported global streaming net additions came in at 15.8 million, far higher than the 8.2 million expected.

Netflix, which has rallied nearly 35% this year, is benefiting from the stay-at-home trend. Chipotle saw digital sales surge more than 80% as the revved-up online orders during the coronavirus shutdown.

Before the bell on Wednesday, Delta Air Lines, AT&T, and Biogen will report earnings.

The West Texas Intermediate contract for June was down slightly, trading at $11.33 per barrel. Brent futures, meanwhile, were up 0.3% at $19.39 per barrel, recovering from a sharp overnight drop.

Moreover, Senate Republicans and Democrats on Tuesday passed a $484-billion coronavirus relief package that focused on small businesses, hospitals, and testing. The House could approve the bill as early as Thursday.

Overseas, in Japan, the Nikkei 225 moved downward 0.7% Wednesday, while in Hong Kong, the Hang Seng Index gained 0.4%.

Oil prices acquired 37 cents to $11.94 U.S. a barrel.

Gold prices improved $24.20 to $1,712 U.S. an ounce.