US stocks are set to open higher on Wednesday, bouncing back from the previous day’s retreat, with Morgan Stanley aiding the rebound after it reported stronger-than-expected first quarter earnings.
Futures are pointing to a 0.4 per cent opening gain for the S&P 500. Gains for the Dow Jones Industrial Average are muted however, with the 5.6 per cent pre-market drop in IBM shares holding back the blue chip index. Futures suggest the Dow will start the day just 0.2 per cent higher following yesterday’s 0.6 per cent decline.
The Nasdaq Composite is meanwhile is expected to tack on 0.4 per cent at the open.
The rebound in stocks comes as investors took a break from their bond buying spree. Yield on the 10-year Treasury note – which moves inversely to price – came off a 5-month low to trade 3.4 basis points higher at 2.202 per cent.
The dollar is also trading moderately higher against its major peers, with the DXY index snapping a four day losing streak after edging up 0.2 per cent.
Along with earnings, traders will have their eyes on Boston Federal Reserve Bank President Eric Rosengren, who is due to speak at 12:30pm ET today. The Federal Open Market Committee will also release its latest Beige Book report at 2pm ET.