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US pre-open: Stocks to rise as Morgan Stanley earnings impress; IBM set to slump
US futures pointed to a positive open on Wall Street on Wednesday following solid earnings from banking giant Morgan Stanley.
At 1225 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all 0.4% higher.
Oanda analyst Craig Erlam said: "US futures are pointing to a third session in the green for equity markets on Wednesday, extending the good run which has come on the back of a slightly less volatile geopolitical environment.
"While nothing has necessarily improved, per say, the absence of retaliation since the air strikes by the US, UK and France in Syria last weekend has been welcomed by investors who are relieved at the current lack of escalation. With the Dow steadily creeping back towards 25,000, investors are becoming increasingly comfortable again although I feel it will not take much to shake things up again and send markets spiralling lower.
"Attention will once again be on first quarter earnings season today with another 10 S&P 500 companies reporting, including Morgan Stanley and American Express."
In corporate news, Morgan Stanley looked set to gain at the open after posting a 40% rise in first-quarter profit, with revenue at a record level, thanks in part to a jump in trading revenue on the back of market volatility.
United Continental Holdings was also likely to advance after its first-quarter earnings late on Tuesday beat expectations, but International Business Machines looked set for a day of losses as the company's first-quarter margins missed forecasts.
Although IBM's profit and revenue were ahead of expectations, its adjusted gross profit margin declined to 43.7% from 44.5% the year before, a drop the group attributed to significant one-time charges.
Southwest Airlines was also likely to be in focus after a woman died on one of its flights as debris from a blown jet engine smashed a window at 32,000 feet and passengers scrambled to save her from being sucked out of the plane. The airline has now launched an investigation into the accident.
In deal news, Emerson said it would buy Textron's tools and test equipment business for $810m.
The Fed's Beige Book is due out at 1900 BST. Investors will also eye speeches from New York Fed President William Dudley and the Fed's vice chair for bank supervision, Randy Quarles, later in the day.