Futures Rally Amid Hopes to Keep Rally Going

Dow Jones Industrial average futures were higher on Wednesday as equities attempt to continue their rebound from a one-day rout to start the week.

Futures for the 30-stock index progressed 64 points, or 0.2%, to 34,463.

Futures for the S&P 500 inched higher 1.25 points to 4,316.75.

Futures for the NASDAQ Composite Index backed off 44 points, or 0.3%, to 14,678.75.

Better-than-expected earnings reports from Dow members Coca-Cola and Johnson & Johnson boosted bullish sentiment for the blue-chip average. However Netflix shares were lower after a disappointing subscriber forecast, weighing on technology shares and keeping the overall market’s gains in check.

Stocks that would benefit most from a continued swift economic reopening were set to bounce again on Wednesday after rebounding from the Monday selloff in the prior session. Shares of Carnival were up nearly 2 %. Las Vegas Sands was up 2%.

Dow member Coca-Cola gave a boost to pre-market sentiment after reporting quarterly revenue that topped pre-pandemic 2019 levels and raising its full-year forecast. Coca-Cola shares gained 2% in premarket trading.

Fellow Dow member Johnson & Johnson’s stock rose after the drugmaker reported better than expected second-quarter earnings and revenue and also raised its 2021 guidance. The shares gained about 1% in premarket trading.

Verizon shares are up 1.6% in early morning trading after reporting better-than-expected revenue and subscriber growth and raising its full-year outlook.

Shares of Chipotle rose 4.5% in pre-market trading as the Mexican fast-food chain reported quarterly revenue that surpassed pre-pandemic levels as dine-in customers returned to its restaurants.

Netflix reported disappointing third quarter subscriber guidance after the bell on Tuesday. The streaming giant said it expects 3.5 million net subscribers in the third quarter, nearly two million below analysts’ estimates. The company also reported earnings that missed expectations.

Netflix shares were last down 1% in pre-market trading.

About 85% of S&P 500 companies that have reported so far have beaten estimates, according to FactSet.

On Tuesday, reopening stocks rebounded sharply from Monday’s selloff triggered by a Covid-inspired global growth scare. American Airlines rose 8.4% and Norwegian Cruise Line rose 8.3%.

Overseas, in Japan, the Nikkei 225 gained 0.6% Wednesday, while in Hong Kong, the Hang Seng index dipped 0.1%.

Oil prices jumped 78 cents to $67.98 U.S. a barrel.

Gold prices settled $11.90 to $1,799.50 U.S. a pound.

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