By Peter Nurse
Investing.com - U.S. stocks are seen opening higher Wednesday, rebounding after the sharp tech-induced losses of the previous session while investors digest more corporate earnings and employment data.
At 7:05 AM ET (1205 GMT), the Dow Futures contract was up 70 points, or 0.2%, S&P 500 Futures traded 14 points, or 0.3%, higher, and Nasdaq 100 Futures climbed 85 points, or 0.6%.
The tech-heavy Nasdaq Composite closed almost 2% lower Tuesday, its worst day since last March, after comments from Treasury Secretary Janet Yellen about higher interest rates resulted in investors exiting the megacap technology and growth stocks in their droves.
However, the tone is more positive Wednesday with investors looking forward to more corporate earnings in what has been a generally strong first quarter, prompting many companies to raise guidance.
General Motors (NYSE:GM) is scheduled to report Wednesday, and much of the attention will be on the chip shortages that are crippling production plans at the giant carmaker and how they'll weigh on future results. Ford last week cut its full-year forecast because of its production woes.
The likes of Hilton Worldwide (NYSE:HLT), Allstate (NYSE:ALL) and Etsy (NASDAQ:ETSY) are also due to release first-quarter data, while eyes will also be on Lyft (NASDAQ:LYFT) after the ride-hailing company reported another strong month of passenger numbers after the bell on Tuesday. Rival Uber (NYSE:UBER) is also due to release its figures after the bell.
Turning to economic data, ADP is expected to report 800,000 new private-sector jobs in April at 8:15 AM ET (1215 GMT), compared with the 517,000 in March, offering up evidence of a continued recovery in the labor market. It will also act as a preview of Friday's nonfarm payrolls numbers.
The ISM’s non-manufacturing survey for April will also be published at 9:45 AM ET, where again the focus will be on the employment subindex, given the Federal Reserve’s focus on the job market.
Oil prices surged Wednesday, with a sharp fall in U.S. crude stockpiles adding to increased optimism the reopening drives in Europe and the U.S. will boost overall fuel demand.
U.S. crude oil supply data from the American Petroleum Institute showed a draw of 7.69 million barrels for the week ended April 30, the largest drop since late January. Investors now await data from the U.S. Energy Information Administration, due later in the day, for confirmation.
U.S. crude futures traded 1.1% higher at $66.39 a barrel, while the Brent contract rose 1.2% to $69.67.
Elsewhere, gold futures traded flat at $1,776.25/oz, while EUR/USD traded 0.1% higher at 1.2016.