Global stocks were set to rebound modestly on Wednesday morning, following a sharp selloff on Tuesday that marked the biggest one-day downturn in about two months.
U.S. stock index futures were higher with about an hour before markets open, suggesting that stocks will rise at the start of trading. Futures for the Dow Jones industrial average were up 22 points or 0.2 per cent. Futures for the broader S&P 500 were up 3 points or 0.3 per cent. The index fell 1.6 per cent on Tuesday, hit by disappointing outlooks from International Business Machines Corp. and Apple Inc., as well as a surprise interest rate hike by China, which clobbered commodity producers.
In Europe, the U.K.'s FTSE 100 was flat but Germany's DAX index rose 0.2 per cent in afternoon trading. In Asia, Japan's Nikkei 225 fell 1.7 per cent in overnight trading.
The gains in North American indexes were mostly due to relatively upbeat earnings from a slew of blue-chip companies. Wells Fargo reported record high earnings of more than $3.3-billion (U.S.) or 60 cents a share, beating analysts' estimates of 55 cents a share, partly due to lower credit loss provisions.
As well, Boeing Co. reported a profit of $1.12 a share, versus a loss last year. The aerospace company also lifted its outlook, with higher demand for commercial and defence aircraft. The shares rose 2.3 per cent in premarket activity.
However, Morgan Stanley disappointed investors with earnings down 67 per cent over last year, even as revenues beat estimates. The financial firm reported earnings of 7 cents a share from continuing operations, versus expectations for earnings of 15 cents a share. The shares fell 2.3 per cent in premarket activity.