MW: U.S. stock futures rise as traders cheer Ferrari IPO, deal news
U.S. stock futures pointed to a higher open Wednesday, as deal news and Ferrari’s market debut gave a lift to sentiment.
Investors also are taking in another round of earnings reports, with Boeing Co. and General Motors Co. shares rising after their results, while Coca-Cola Co.’s stock dropped.
S&P 500 futures ESZ5, +0.45% moved higher by 8.65 points, or 0.4%, to 2,029.25, while Dow Jones Industrial Average futures YMZ5, +0.40% advanced by 79 points, or 0.5%, to 17,186. Nasdaq 100 futures NQZ5, +0.53% added 20.25 points, or 0.5%, to 4,445.
“Excitement over the Ferrari IPO is helping U.S. stocks nudge towards a positive open,” said Jasper Lawler, a CMC Markets analyst, in a note. Ferrari N.V. shares RACE, +0.00% are set to begin trading Wednesday on the New York Stock Exchange under the ticker “RACE” after the car maker’s initial public offering priced at the top of expectations Tuesday.
Check out: 7 things to know about Ferrari as it goes public
On Tuesday, the S&P 500 SPX, -0.14% and Dow DJIA, -0.08% both closed 0.1% lower, while the Nasdaq COMP, -0.50% fell 0.5%. The three benchmarks all snapped three-day win streaks, leaving them roughly flat for the week after two days of trading.
Wall Street on Tuesday “did not feel particularly comfortable in its own skin. The quality of earnings continued in many cases to disappoint,” said David Buik, market commentator at Panmure Gordon & Co., in a note on Wednesday.
Movers and shakers: Shares in KLA-Tencor Corp. KLAC, +1.39% surged 17% in premarket action as Lam Research Corp. LRCX, +3.53% plans to acquire the provider of semiconductor equipment in a $10.6 billion deal that values KLA-Tencor’s stock at 24% above where it closed Tuesday. SanDisk Corp. SNDK, +4.43% shares also climbed as Western Digital Corp. WDC, -6.98% agreed to buy the flash-storage company in a $19 billion deal.
General Motors Co. GM, +0.72% gained 3.8% after the auto maker posted third-quarter profit and revenue that were well above expectations, while Boeing Co. BA, +0.33% rose 3.3% after its better-than-anticipated earnings and improved outlook.
But Coca-Cola Co.’s KO, +0.71% shares fell 0.5% in premarket trading as the soda giant’s revenue missed forecasts. Chipotle Mexican Grill Inc. CMG, -1.81% slumped 7.3% after its disappointing results late Tuesday and Yahoo Inc. YHOO, -2.00% declined 1.6% after the Web pioneer warned late Tuesday about the holiday quarter.
Starbucks Corp. SBUX, -0.15% has been hit by a European Commission ruling that its tax deal with the Netherlands is illegal state aid. Starbucks plans to appeal the decision, and Fiat Chrysler Automobiles NV’s FCA, -0.35% tax deal in Luxembourg has also been targeted.
After the market’s close, eBay Inc. EBAY, -0.55% and American Express Co. AXP, -0.06% are among the companies expected to post quarterly earnings.
Other markets: Oil futures CLZ5, -1.58% fell ahead of a producers’ meeting, as gold futures GCZ5, -0.05% and a key dollar index DXY, +0.03% edged lower.
European stocks SXXP, +0.22% rose after shaking off early losses. Asian stocks showed mixed action, with Japan’s Nikkei NIK, +1.91% closing up 1.9% but the Shanghai Composite SHCOMP, -3.06% ending 3.1% lower for its biggest drop in a month.
U.S. economic news: There are no top-tier U.S. economic reports slated for release on Wednesday.
At 1:30 p.m. Eastern, Federal Reserve Gov. Jerome Powell is due to moderate a panel on repo markets, liquidity and the Treasury market at a regulatory conference.
