U.S. stock index futures climbed on Wednesday after solid earnings and outlooks from a trio of major technology companies renewed optimism about corporate profits and the economic recovery.
It's not just that the earnings were good. Expectations were that we were going to begin to get a series of disappointing earnings, said Rick Meckler, president of LibertyView Capital Management in New York.
So you've got not just the reaction to the better-than-expected earnings, but a change in sentiment from what has been seen as a possibly very disappointing earnings quarter, particularly for technology.
Adding to the positive tone, Spain attracted solid demand at a bond sale on Wednesday, easing concerns it could be swept up by the contagion hitting other euro zone members.
Diversified manufacturer United Technologies Corp
AT&T added 1.6 percent to $30.80 after the Dow component posted its first-quarter results.
S&P 500 futures added 17.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 137 points and Nasdaq 100 futures rose 29.25 points.
Other companies scheduled to report quarterly results on Wednesday include Apple Inc
Apple is expected to report quarterly results tempered by caution over how supply constraints may squeeze margins and restrain iPhone and iPad sales. [nL3E7FK17N]
Economic indicators include March existing-home sales at 10 a.m..
On the M&A front, U.S. power company AES Corp
DPL shares gained 8.8 percent to $30.01 in premarket trade.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)