Qualcomm's stock under pressure after EU fine tied to illegal payments to Apple
U.S. stock futures on Wednesday pointed to a rally at the open, setting up the main benchmarks for another round of records.
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Investors are getting a fresh flurry of corporate earnings, including from components of the Dow Jones Industrial Average like General Electric Co. and United Technologies.
What are the main benchmarks doing?
Dow Jones Industrial Average futures gained nearly 103 points, or 0.4%, to 26,303, while S&P 500 futures tacked on 9.15 points, or 0.3%, to 2,848.75. Nasdaq-100 futures rose by 123.50 points, or 0.3%, to 6,989.
On Tuesday, the S&P 500 and Nasdaq Composite notched all-time closing highs again (http://www.marketwatch.com/story/dow-futures-rally-100-points-as-investors-move-past-shutdown-worries-to-focus-on-earnings-2018-01-23), while the Dow edged back from its record close hit on Monday.
The three equity gauges are up between 6% and 8.1% so far in 2018, adding to last year's sizable gains as investors cheer the expanding U.S. economy and growth in corporate profits.
What are strategists saying?
"The S&P 500 really is up more than 6% so far this month and shows no sign of abatement," said Voya Investment Management strategists Doug Coté and Karyn Cavanaugh in a note.
"What could possibly go wrong? Well, one risk to the market could be global trade," they added, noting that President Trump late Monday approved tariffs (http://www.marketwatch.com/story/first-solar-shares-jump-8-after-white-house-oks-tariffs-on-solar-panel-imports-2018-01-22) on imports of solar panels and washing machines.
Which stocks look like key movers?
Shares in Qualcomm Inc.(QCOM)traded 0.9% lower in premarket after the chip company was hit with a $1.2 billion antitrust fine by the European Union (https://www.wsj.com/articles/eu-to-fine-qualcomm-over-exclusivity-payments-to-apple-1516783685?mod=mktw). The EU said Qualcomm made illegal payments to Apple Inc.(AAPL)for exclusively using its chips in iPhones and other products.
Conglomerates GE(GE) saw its stock jump in premarket trade after reporting weaker-than-expected quarterly results (http://www.marketwatch.com/story/ges-stock-surges-despite-surprise-loss-and-revenue-miss-as-power-and-oil-gas-revenue-beats-2018-01-24) but offered a rosier revenue projection for its power and oil-and-gas business. Shares were up 2.1%.
Comcast Corp.'s stock (CMCSA)fell 1.5% after reporting earnings boosted by its broadband business and after announcing plans to repurchase $5 billion in stock in 2018.
Puma Biotechnology Inc.'s shares (PBYI) slumped by 26% after its price target was lowered, notably by J.P. Morgan Chase, as the company said a European Medicines Agency committee completed a negative vote for its breast cancer therapy neratinib (http://www.marketwatch.com/story/puma-biotech-shares-plummet-after-concerning-turn-in-europe-2018-01-24).
Shares of United Technologies Corp.(UTX) rose modestly, up 0.3%, after its fourth-quarter results, which revealed charges stemming from the new tax law (http://www.marketwatch.com/story/united-technologies-profit-dented-by-tax-charge-2018-01-24).
Texas Instruments Inc.(TXN)appeared on track to decline 6.4% after the chip company delivered in-line results and a modest outlook (http://www.marketwatch.com/story/texas-instruments-shares-fall-on-in-line-results-modest-outlook-2018-01-23) late Tuesday.
United Continental Holdings Inc.(UAL)appeared on pace to slump by 7.3% for after the airline posted earnings (http://www.marketwatch.com/story/united-stock-rises-after-fourth-quarter-earnings-beat-2018-01-23) late Tuesday.
Ford Motor Co.(F)results are due to report after the close of trade. Shares were up about 0.7%.
What are other assets doing?
The ICE U.S. Dollar Index was trading at a fresh three-year low as U.S. Treasury Secretary Steven Mnuchin said a weaker greenback is good for trade (http://www.marketwatch.com/story/dollar-plunges-to-3-year-low-after-mnuchin-cheers-weaker-greenback-2018-01-24) while speaking at the World Economic Forum in Davos, Switzerland. European and Asian stocks have been a mixed bag.
Gold futures were advancing nearly 1%, while oil futures (http://www.marketwatch.com/story/natural-gas-soars-with-the-leap-setting-off-a-trading-halt-2018-01-24)were edging up.
What economic data could help drive markets?
At 9:45 a.m. Eastern Time, Markit is slated to deliver January readings for its purchasing managers' indexes for manufacturing and services.
A December report on existing home sales is due to arrive at 10 a.m. Eastern.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
(END) Dow Jones Newswires
January 24, 2018 08:47 ET (13:47 GMT)