U.S. stock index futures pointed to a rise of more than 1 percent at the open on Wednesday after JPMorgan Chase & Co (JPM.N) posted a surge in profit following stronger numbers from Intel Corp (INTC.O) a day earlier.
JPMorgan, the first major U.S. bank to report quarterly earnings, said profit rose sharply as underwriting revenue at its investment bank offset deeper losses on credit cards and other consumer loans.
The bank's profit and a stronger outlook from chip maker Intel Corp (INTC.O) late on Tuesday lifted futures and set the tone for a a much-anticipated earnings season that many expect to underscore the stock market's seven-month rally and the prospects for economic recovery.
Obviously the (JPMorgan) results look much better than expected, on both the top line and the bottom line. It's an old leader in the industry, but it certainly delivered, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
JPMorgan shares rose about 4 percent in premarket trade on the better-than-expected results. Intel shares rose 4.7 percent.
S&P 500 futures SPc1 rose 14.60 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 DJc1 rose 118 points, and Nasdaq futures NDc1 rose 23.00 points.