U.S. stocks were poised for a strong open on Wednesday after a raft of solid earnings and outlooks bolstered optimism about the economic recovery.
It seemed like the earnings season got off to a bit of a shaky start, but now companies are coming through with very strong results, by and large, said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
This really shows that corporations are delivering strong results and benefiting from the slow but steady economic improvement.
Adding to the positive tone, Spain attracted solid demand at a bond sale on Wednesday, easing concerns it could be swept up by the debt contagion of some other euro zone members.
United Technologies Corp
AT&T slipped 0.2 percent to $30.25 after the Dow component reported first-quarter results and posted weak subscriber growth as it gave up exclusive U.S. rights to sell the Apple iPhone.
S&P 500 futures added 17.6 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 145 points and Nasdaq 100 futures rose 30.5 points.
As gold shot above $1,500 an ounce for the first time ever, Freeport-McMoRan Copper & Gold
Companies scheduled to report quarterly results later 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.
Economic indicators include March existing-home sales at 10 a.m. <1400 GMT>.
In deal news, U.S. power company AES Corp
DPL shares gained 8.5 percent to $29.94 and AES advanced 2.3 percent to $12.75 in premarket trade.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)