FX.co ★ Upbeat Earnings News May Lead To Extended Rebound On Wall Street

Major U.S. index futures suggest a likely rise on Wall Street on Wednesday, following significant gains over the previous two sessions. This upward trend may be fueled by a positive response to recent corporate earnings news and a rebound from last week's notable weakness.

Tesla shares are expected to make significant gains, soaring by 11.4 percent in pre-market trading, despite the company's first quarter results missing expectations. This surge is in response to CEO Elon Musk's announcement to start production of a new affordable model by early 2025.

Shares of semiconductor company Texas Instruments are also seeing pre-market strength after surpassing both top and bottom line expectations in their first quarter results. Other companies expected to see upward movement include Visa, Boeing, and Mattel, following better-than-expected quarterly results.

U.S. stocks ended well on Tuesday, with technology shares performing particularly well due to positive earnings forecasts. The Dow ended with a gain of 263.71 points, the S&P 500 jumped 59.95 points, and the Nasdaq surged 245.33 points.

Several tech giants, including Microsoft, Alphabet, Meta Platforms, and Intel, are set to announce their quarterly earnings this week. Other significant companies reporting their quarterly earnings this week include Boeing, American Airlines, Chevron, and Exxon Mobil.

Tesla announced after the closing bell that its total earnings for the first quarter amounted to $1.13 billion, a decrease from last year's first quarter of $2.51 billion.

In other news, Walmart's shares fell by 2.3 percent, and Boeing's by nearly 1 per cent, while Invesco and Pepsico also ended significantly lower. On a more positive note, Globe Life, Danaher, GE Aerospace, Kimberly-Clark, and General Motors saw sharp rises in their shares.

The S&P Global U.S. Composite PMI noted a slight decline, suggesting a modest expansion in the private sector. New home sales also experienced an 8.8 percent increase to an annual rate of 693,000 in March.

Investors are now looking ahead to more economic data this week, including the release of first-quarter U.S. GDP data as well as the core personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation.

In the commodity markets, crude oil futures are sloping down to $83 a barrel, while gold trades at $2,329.80 per ounce. In currency markets, the U.S. dollar trades at 154.93 yen and $1.0683 against the euro.

Asian stocks are making advances on Wednesday, as focus remains on earnings reports from the U.S. Fortune 500 companies due this week. Facebook owner Meta Platforms will announce its first-quarter earnings later today, while Microsoft and Alphabet will report their financial results on Thursday.Leading electric vehicle manufacturer, Tesla, revealed its intention to launch new car models sooner than previously expected, further raising hopes for the company's growth.

In financial news, the strength of the dollar and U.S. Treasury yields decreased following weaker-than-anticipated U.S. manufacturing and services PMI figures. The Asian gold market remained stagnant, with prices remaining above $2,300 per ounce. Oil prices remained steady, carrying over substantial gains from the previous trading session due to positive inventory data.

Chinese stock markets, specifically the Shanghai Composite Index, experienced significant growth, increasing by 0.8 percent to 3,044.82, following Ping An Insurance's announcement of greater than expected growth. The Hang Seng Index in Hong Kong rose 2.2 percent to 17,201.27, bolstered by the announcement of a new generative AI model by Chinese artificial intelligence software developer, SenseTime Group, which caused its shares to skyrocket by 31.2 percent.

In Japan, the chip-focused stock market saw a sharp rise owing to impressive earnings reported by Texas Instruments. The Nikkei 225 Index saw a 2.4 percent surge to 38,460.08, continuing the positive trend for the third day ahead of a Bank of Japan policy meeting. Notably, Advantest, Screen Holdings, Tokyo Electron, and Renesas Electronics saw respective stock gains of 3.6 percent, 4.6 percent, 7.1 percent, and 10.5 percent. Notably, Nikon shares shot up 10.3 percent after Silchester International Investors announced an investment in the company, marking its largest daily increase in 11 years.

The Japanese yen is close to 34-year lows against the dollar, following Finance Minister Shunichi Suzuki's comments suggesting that conditions are ripe for a foreign exchange market response.

Korean stocks, particularly tech giants Samsung Electronics and SK Hynix, steadily advanced, resulting in a 2.0 percent increase for the Kospi to 2,675.75. LG Energy Solution also saw a 4.1 percent boost. In Australia however, markets dipped slightly despite strong consumer inflation in Q1, supporting the case for sustained high interest rates.

In Europe, investor optimism is being tempered after an ECB policymaker suggested a possible June rate cut may not be followed by further cuts. Furthermore, data from the ifo Institute indicates a rise in German business sentiment. Notable shifts included ASM International's revenue forecast upgrade, Filtronic's strategic partnership with SpaceX, and Roche's 6% Q1 sales decrease.

Volvo Cars shares took a hit following disappointing Q1 revenue, while Kering's profit warning resulted in a significant drop in share prices, exacerbated by concerns about waning demand for its Gucci brand. Moreover, Sound Energy in London reported losses for 2023, leading to concerns about its future viability. Despite the fluctuations, the UK's FTSE 100 Index, the French CAC 40 Index and the German DAX Index have all experienced growth.A report released by the Commerce Department revealed a significant increase in orders for transportation equipment, demonstrating that new orders for US-manufactured durable goods experienced larger-than-expected growth in March.

Durable goods orders rose by 2.6% in March, a substantial increase from the revised 0.7% rise in February. Economists had projected a 2.3% surge, compared to the previously reported 1.3% increase from the preceding month.

When excluding the jump in orders for transportation equipment, the growth in durable goods orders was more conservative, with a 0.2% rise in March following a 0.1% increase in February. Predictions had suggested a rise of 0.3% for orders excluding transportation.

The Energy Information Administration has scheduled the release of its weekly report on oil inventories for 10:30 am ET. An anticipated 1.6 million-barrel increase is expected, following a 2.7 million-barrel jump in the previous week.

At 1 pm ET, the Treasury Department is set to announce the results of the monthly auction, which includes $70 billion worth of five-year notes.