Global Stocks Cautiously Higher, Wall Street Steady, as Trade Concerns Linger
Frankfurt (Apr 18) US Stocks are set to open higher Wednesday, boosting the Dow Jones Industrial Average past a one-month high, as investors weigh the impact of a strong corporate earnings season but continue to remain concerned over the fate of global economic growth and protectionist trade policies from the White House.
Equity futures prices suggest modest gains for the main U.S. indices later today, with contracts tied to the Dow Jones Industrial Average rising 90 points, indicating a 48 point gain for the benchmark after closing 218 points to the upside last night. The broader S&P 500, which gained 1.05% yesterday, is slated to edge 9.25 points higher at the opening bell.
International Business Machines Corp. (IBM - Get Report) shares are on pace for their biggest single-day decline in a year Wednesday, a move that will clip around 50 points from the Dow, after the former tech sector icon reported a weaker-than-expected profit margin in an otherwise solid set of first quarter earnings.
IBM shares were marked 5.28% lower in pre-market trading in New York, indicating an opening bell price of $152.43, a move that would be the stock's biggest one-day slide since last April and take the stock into negative territory for the year.
Other stocks moving in pre-market trading include Morgan Stanley (MS - Get Report) , which popped 1.4% after a stronger-than-expected set of first quarter earnings, and ebay Inc, (EBAY - Get Report) , which surged 4.16% after a double upgrade to 'overweight' from Morgan Stanley analysts Brian Nowak.
In Europe, the Stoxx 600 index edged 0.103% higher by mid-day in Frankfurt, with similar percentage gains for benchmarks around the region as investors approached the session with caution after President Donald Trump Tweeted last night that he doesn't intend to bring the U.S. back into the Trans-Pacific Partnership trade deal, a comment that suggests his two-day summit with Japan's Prime Minister Shinzo Abe isn't bringing the two sides closer to an agreement on narrowing the latter's $623 billion U.S. trade surplus.
TheStreet
