(Editor’s note: The ETFs data was updated and economic data was added.)
U.S. stock futures rose on Wednesday, as the Dow Jones and S&P 500 indices advanced, after the Dow and S&P 500 hit new all-time highs on Tuesday and closed higher.
Treasury Secretary Scott Bessent said in an interview with CNBC that there is a chance that the Iran deal may be reached on Tuesday or Wednesday to reopen the Strait of Hormuz and restore the navigation of commercial ships through the critical waterway.
"We are in talks with the Iranians," Bessent said, while adding that there could be major relief across energy products, fertilizers, refined products and industrial gases once a deal is reached with Iran.
Meanwhile, the 10-year Treasury bond yielded 4.607%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool’s projections show markets pricing a 58.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.20% |
| S&P 500 | 0.31% |
| Nasdaq 100 | -0.08% |
| Russell 2000 | 0.20% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were mixed in premarket on Wednesday. The SPY was up 0.49% at $775.13, while the QQQ declined by 0.21% to $725.34.
Read Also: Stock Market: Will S&P 500 Open Up or Down Today?
Stocks In Focus
Advanced Micro Devices
- Advanced Micro Devices Inc. (NASDAQ: AMD ) reported better-than-expected results in the second quarter with revenue of $11.54 billion and adjusted earnings of $1.66 per share, beating analyst estimates of $11.28 billion in revenue and $1.61 in earnings per share. AMD shares were down 8.4% in Wednesday’s pre-market trade.
- Benzinga’s Edge Stock Rankings indicate that AMD maintains a strong price trend in the long and medium terms, with a good quality score.
Space Exploration Technologies
- Space Exploration Technologies Corp. (NASDAQ: SPCX ) reported second-quarter revenue of $7.81 billion, with a loss of $0.09 per share, beating consensus estimates of revenue of $6.93 billion and a loss of $0.24 per share, according to Benzinga Pro. SpaceX shares were down 1.02% in the pre-market session.
- Benzinga’s Edge Stock Rankings indicate that SPCX maintains a weak price trend in the long, medium, and short terms.
SanDisk
- SanDisk Corp. (NASDAQ: SNDK ) is expected to report revenue of $8.93 billion and earnings per share of $34.45 in the fiscal fourth quarter, according to Benzinga Pro. SanDisk shares were down 0.83% in Wednesday’s pre-market trade.
- Benzinga’s Edge Stock Rankings indicate that SNDK maintains a weak price trend in the medium and short terms, with a good momentum score.
Eli Lilly and Co.
- Eli Lilly and Co. (NYSE: LLY ) shares were up 3.08% in Wednesday’s pre-market trade. The company is expected to report revenue of $20.73 billion and earnings per share of $6.01 before the opening bell, according to Benzinga Pro.
- Benzinga’s Edge Stock Rankings indicate that LLY maintains a strong price trend in the long and medium terms, with a good quality score.
Datadog
- Datadog Inc. (NASDAQ: DDOG ) shares were up 1.28% in Wednesday’s pre-market session. The company is expected to report revenue of $1.08 billion and earnings per share of $0.58 before the opening bell, according to Benzinga Pro.
- Benzinga’s Edge Stock Rankings indicate that DDOG maintains a strong price trend in the long, medium, and short terms, with a strong momentum score.
Cues From Last Session
Information technology, materials and industrial stocks led gainers, while utilities, energy and consumer discretionary saw the largest losses on Tuesday.
| Index | Performance (+/-) | Value |
| Dow Jones | 1.71% | 54,085.88 |
| S&P 500 | 1.79% | 7,736.52 |
| Nasdaq Composite | 2.59% | 26,584.99 |
| Russell 2000 | 1.85% | 3,036.98 |
Insights From Analysts
Analysts at Schwab Center for Financial Research said in a note on Wednesday that the S&P 500’s rebound above its 50-day moving average after briefly slipping below it last week is a constructive technical signal and may be fueling short covering that is adding momentum to the rally.
The index had traded close to its 50-day moving average for much of June and July and is now sitting farther above that level than at any point since early June, the firm said.
A tightening services sector could reignite wage pressures, putting Friday’s payrolls report in sharp focus. Kevin Gordon, head of macro research and strategy at the SCFR, said any evidence of labor market tightness could reinforce market concerns about the Federal Reserve’s inflation-fighting credibility.
Upcoming Economic Data
- Private sector employment increased by 44,000 jobs in July and pay was up 4.4%, ADP reported.
- July’s U.S. services PMI will be released by 9:45 a.m ET., and July’s ISM services PMI data will be available at 10:00 a.m.
- Federal Reserve Governor Lisa Cook will speak at 4:05 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 0.51% to hover around $76.16 per barrel.
Gold Spot US Dollar rose 2.16% to hover around $4,165.54 per ounce. The U.S. Dollar Index spot was 0.03% lower at the 99.710 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.56% higher at $64,007.77 per coin over the last 24 hours.
Asian markets closed mostly higher on Wednesday, as Japan’s Nikkei 225, South Korea’s Kospi, China’s CSI 300, and Hong Kong’s Hang Seng indices surged. India’s Nifty 50 and Australia’s ASX 200 indices declined. European markets were mostly higher in early trade.
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