US pre-open: Stocks seen higher as Apple rallies on earnings

US futures pointed to a firmer open on Wall Street on Wednesday as shares in tech giant Apple surged in pre-market trade following well-received third-quarter earnings.

At 1125 BST, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were 0.1% and 0.8% higher, respectively.

Oanda analyst Craig Erlam said: “US indices are on course to open a little higher on Wednesday, buoyed by stronger earnings from Apple on Tuesday and ahead of some important jobs data from ADP which will act as a precursor to Friday’s non-farm payrolls number.

“It’s been a very good earnings season for the US so far and Apple’s results were another reminder of this. With futures pointing at a higher open on the back of this, we could be looking at another record day for US stocks, assuming the momentum from second quarter results can be maintained. With another 44 S&P 500 companies reporting on Wednesday, there is certainly scope for another bump higher if companies continue to beat expectations as they have.”

Apple shares were up 6% in pre-market trade after hitting a record high in after-hours trading as its earnings topped estimates. The company reported adjusted earnings per share of $1.67 versus estimates of $1.57 and revenue of $45.4bn compared with expectations of $44.89bn.

Elsewhere, Match Group was under the cosh ahead of the bell after disappointing second-quarter results.

Earnings are due before the open from Humana, Mondelez International, Time Warner and Molson Coors Brewing. After the close, Tesla, Fitbit and American International Group will report.

On the data front, investors will eye the release of the ADP employment at 1315 BST.

Erlam said: “The ADP employment data will as always be of interest today, particularly as it’s one of the few pieces of data we’re due to get. While the number itself isn’t always as accurate as we’d hope, it could provide insight into whether the July jobs report is going to be good or disappointing. Expectations ahead of the release suggest markets are preparing for another good report on the job creation side, with 185,000 new jobs expected.”

Market participants will also be watching out for speeches by Cleveland Fed President Loretta Mester and Francisco Fed president John Williams at 1700 BST and 2030 BST, respectively.