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Nasdaq set for fresh record high, while Dow, S&P struggle for direction

Published 2017-07-19, 07:00 a/m
© Reuters.  Nasdaq set for fresh record high
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Investing.com - U.S. stock futures pointed to muted open on Wednesday morning, with the exception of tech shares, which looked ready to break new record highs, all as investors kept an eye on earnings.

The blue-chip Dow futures ticked down 8 points, or less than 0.1%, by 7:00AM ET (1100GMT), the S&P 500 futures added 2 points, while the tech-heavy Nasdaq 100 futures rose 14 points, or roughly 0.2%.

U.S. stocks ended mixed on Tuesday, as a Netflix (NASDAQ:NFLX) rally boosted the Nasdaq Composite to a record high, while Goldman Sachs (NYSE:GS) dragged the Dow lower.

The quarterly reporting season continued on Wednesday, with the focus on earnings from Morgan Stanley (NYSE:MS).

The Wall Street investment bank reported earnings per share of 87 cents on revenue of $9.5 billion in the April-June quarter. Analysts had expected EPS of 76 cents on revenue of $9.09 billion. Its shares were higher by almost 2% ahead of the bell.

Results after the close are expected from American Express (NYSE:AXP), Alcoa (NYSE:AA), Qualcomm (NASDAQ:QCOM), T-Mobile (NASDAQ:TMUS) and Kinder Morgan (NYSE:KMI).

Among active pre-market movers, IBM (NYSE:IBM) shares fell around 3% after the tech firm posted its 21st consecutive quarter of declining revenue late Tuesday.

Shares of CSX (NASDAQ:CSX) lost more than 4% after the rail transport company provided softer-than-expected second-half guidance, despite beating on earnings for the current quarter.

Meanwhile, shares of Vertex Pharmaceuticals (NASDAQ:VRTX) skyrocketed more than 25% after the company said that a new drug cocktail improved lung function in patients with cystic fibrosis.

Shares in media companies Discovery Communications (NASDAQ:DISCA) and Scripps Networks (NASDAQ:SNI) also look set for big up days after jumping late Tuesday on a Wall Street Journal report that they might merge.

On the data front, market players will focus on U.S. housing sector data to gauge the strength of the world's largest economy and how it will impact the Fed's view on monetary policy.

The Commerce Department is to publish a report on housing starts and building permits for June at 8:30AM ET (1230GMT).

Market players will also keep an eye out for headlines coming out of Washington after a second attempt by Republicans to replace Obamacare failed this week, delivering a major blow to President Donald Trump's agenda.

Investors were now more doubtful over the future of the Trump administration's planned tax reforms, given the difficulty the healthcare bill has faced in making progress.

Elsewhere, oil prices posted solid gains as investors looked ahead to the Energy Department's weekly supply report at 10:30AM ET (1430GMT).

U.S. crude was at $46.56 a barrel, up 16 cents, or around 0.4%, while Brent rose 25 cents to $49.09.

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