US equity futures rose in overnight trading ahead of the major technology gains from Microsoft and Tesla on Wednesday.
Dow futures rose 128 points. Futures also indicated a higher open for the S & P 500 and the Nasdaq-100.
Some disappointing corporate earnings after the bell on Tuesday weighed on investor sentiment. Snap stocks fell more than 9% in expanded trading after the social media company reported fewer than expected daily active users.
United Airlines shares fell into expanded trading after the company reported a net loss of $ 1.62 billion in the second quarter. The coronavirus pandemic's impact on travel resulted in a 87% year-over-year decline in revenue for the Chicago-based airline.
The winning season continues on Wednesday with reports from Microsoft, Tesla, Chipotle Mexican Grill, CSX and Las Vegas Sands after the closing bell. All eyes will be on Tesla's earnings, which could qualify the company as an S&P 500 component.
Biogen, Baker Hughes and Nasdaq report winnings on Wednesday before the bell.
On Tuesday, the Dow Jones Industrial Average rose more than 150 points after rising more than 300 points from its daily high. Chevron and Exxon Mobil fueled the 30-share index up 7% and 5%, respectively, as oil rose to its highest level in March. The S & P 500 closed in positive territory with a moderate plus of 0.2%.
The Nasdaq Composite underperformed by 0.8% as Facebook, Amazon Apple, Netflix and the Google parent alphabet all closed lower. The Nasdaq gained more than 2.5% on Monday.
"A big change in leadership dominated the day," Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. "The old leadership, led by large-cap technology and communications, gave way to strong upward moves in the broader market, including most cyclical sectors."
"Overall, the character of Tuesday has shown an appetite to increase" risk-on betting "in new areas of the stock market away from the old leadership of the FAANGs," added Paulsen.
Better than expected profits from Coca-Cola and IBM boosted the mood on Wall Street on Tuesday. Coca-Cola rose more than 2%, but IBM was in the red.
Investors are also weighing corporate earnings against the backdrop of increasing coronavirus cases in the United States. The virus infected more than 3.8 million Americans on Tuesday and killed at least 141,118 people, according to Johns Hopkins University. Texas and Florida hit a bleak record of coronavirus daily deaths on Monday, based on a seven-day moving average, as hospitalization in 34 states continues to increase in the United States.
President Donald Trump warned on Tuesday that the coronavirus pandemic in the United States is likely to "get worse before it gets better".
Existing home sales for June will be published on Wednesday at 10:00 a.m. Economists surveyed by Dow Jones expect a recovery to 4.73 million sales.
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