Stocks were indicated to open higher Wednesday as major index futures rose in premarket trading. Investors appeared to be encouraged by a better than expected earnings reports from Coca-Cola Co. (KO) and an upbeat outlook from Intel (INTC). A flood of earnings reports later in the day could impact the market's direction.
Economic reports were also in focus Wednesday. Investors were awaiting updates on the March headline consumer price index (CPI), which economists expected to rise 0.4%, with core CPI, which excludes food and energy prices, expected to rise 0.2%; March housing starts, which were expected to decline to a 1.001 million-unit annual pace from 1.065 million a month before; and March industrial production, which is seen falling 0.1%.
Also, the Federal Reserve's Beige Book survey of economic conditions is likely to indicate the Fed's growth concerns remain stronger than its worries about inflation. Gold and oil futures were rising as the dollar fell to a record low vs. euro.
On Tuesday, the blue-chip Dow Jones industrial average finished higher by 60.41 points, or 0.49%, to 12,362.47. The broader S&P 500 index rose 6.11 points, or 0.46%, to close at 1,334.43. The tech-heavy Nasdaq composite index added 10.22 points, or 0.45%, to end the session at 2,286.04.
Intel turned in a surprisingly upbeat first-quarter report after the close of trading Tuesday despite a double-digit drop in profits, heartening anxious investors with news of "healthy demand" for its mainline chips for computers and servers.
BlackRock Inc.'s (BLK) first-quarter earnings rose 24% but fell short of Wall Street expectations as performance-based fees languished amid market turmoil, the financial services firm said Wednesday.
According to a Wall Street Journal report, Merrill Lynch (MER) on Thursday will report $6 billion to $8 billion in new write-downs, according to a person familiar with the matter. The latest would bring its total since October to more than $30 billion and mean that Merrill reports a third straight quarterly net loss, the longest losing streak in its 94-year history.
The ABC News/Washington Post Consumer Comfort Index fell to a 13-year low -39 in the week ended April 13 from -34 the previous week, weighed down by the housing and credit crises and higher gasoline prices. Respondents with positive views of the buying climate fell one percentage point to 24%. Those with positive views of the national economy fell two percentage points to 15%. Those with positive views on personal finances fell 4 percentage points to 53%.
A separate ABC monthly measure said 3% of Americans believe the U.S. economy is improving, unchanged from last month. Confidence measures are generally viewed as a barometer of consumer spending, which accounts for two-thirds of the U.S. economy. However, economists note that consumers do not always act in accordance with their statements to surveys.
Crude oil futures were heading to record heights Wednesday as the dollar fell to record lows against the euro as the eurozone's inflation rate remains under control, which likely to allow the European Central Bank to leave rates unchanged for while to come. May WTI crude oil futures were up 52 cents to $114.31 per barrel before an Energy Dept. report that industry researcher Platts predicts will show crude oil stocks rose 1.5 million barrels to 317.5 million barrels.
European markets were trading higher Wednesday. In London, the FTSE 100 index rose 0.77% to 5,952.50. In France, the CAC 40 index gained 0.73% to 4,815.71. Germany's DAX index climbed 0.53% to 6,620.05.
Asian markets ended mixed. Japan's Nikkei 225 index added 1.2% to 13,146.13. In Hong Kong, the Hang Seng index fell 0.1% to 23,878.35.