By Saumya Vaishampayan
U.S. stock futures rose Wednesday, boosted by upbeat earnings
from Twitter Inc. and Garmin Ltd.
The first reading on U.S. economic growth in the second quarter
and a policy statement from the Federal Reserve are due
Wednesday.
About 90 minutes ahead of the open, Dow Jones Industrial Average
futures added 47 points, or 0.3%, to 16892.
S&P 500 index futures gained seven points, or 0.3%, to 1970
and Nasdaq-100 futures rose 18 points, or 0.4%, to 3969. Changes in
stock futures don't always accurately predict stock moves after the
opening bell.
Stocks fell Tuesday amid news that the U.S. and the European
Union had adopted new economic sanctions against Russia. The Dow
lost 0.4% to 16912.11 and the S&P 500 dropped 0.5% to
1969.95.
Stocks have surged to records this year, fueled by low interest
rates, improving labor-market data, and strong corporate earnings.
But yet another quarter of significant growth disappointment could
weigh on the market.
At 8:15 a.m. Eastern, investors are set to get a reading on
private-sector employment. Economists expect the ADP survey to show
the private sector added 238,000 jobs in July. The data will be
followed by a reading on second-quarter growth, with economists
calling for an expansion of 3.0% versus a contraction of 2.9% in
the first quarter.
"There was a certain sense that the first quarter was a
write-off" because of the harsh winter, said Brad McMillan, chief
investment officer for Commonwealth Financial. "We don't have that
excuse this time." Data showing economic growth of less than 1%
could suggest that the economy hasn't recovered in the way
investors had thought, which could cause investors to reassess
their outlook for stocks, he said.
Still, a number that's only slightly less than 3% will likely be
shrugged off by the market because of its current tendency to move
higher, he said.
The Federal Reserve's monetary-policy statement is due
Wednesday, with expectations for another cut in monthly bond
purchases to $25 billion from $35 billion. Officials are likely to
discuss when and how to raise short-term interest rates from near
zero, where they have been since late 2008.
In corporate news, shares of Twitter jumped 25% in premarket
trade. The social-media company reported second-quarter revenue
that more than doubled and posted its second consecutive quarter of
accelerating user growth, reassuring investors about the service's
popularity.
Garmin posted stronger-than-expected second-quarter earnings and
lifted its outlook for the year. Shares jumped 6.9%.
Amgen Inc. said it intends to cut its workforce by 12% to 15%
and close facilities in two states as it aims to concentrate
resources on developing new drugs. Shares rose 3.5% premarket.
U.S.-listed shares of AstraZeneca PLC rose 1% premarket after
the company agreed to buy the rights to a portfolio of inhaled
drugs from Almirall SA. The deal is worth up to $2.1 billion.
Humana Inc. reported a second-quarter profit that met analyst
estimates, while revenue topped expectations. Shares rose 1.9% in
premarket trade.
Overseas, the Stoxx Europe 600 index was little changed.
In commodity markets, gold futures rose 0.1% to $1,299.00 an
ounce and crude-oil futures added 0.4% to $101.33 a barrel.