Stock futures rise ahead of more big earnings reports

U.S. stock futures rose in early morning trading on Wednesday as investors prepare for another round of corporate earnings.

Dow futures rose 2021 points, or 0.6%. S&P 500 futures gained 0.7% and Nasdaq 100 futures rose 0.9%.

Chipotle rose more than 6% in after-hours trading on the back of its strong earnings, while Lyft tumbled after announcing it had fewer active riders than in the prior quarter.

Elsewhere, Peloton rebounded, rising more than 4% premarket the day after the company announced a restructuring plan that will include layoffs and the removal of its CEO. Despite a bumpy road, shares of the interactive fitness company are now positive year to date.

Wednesday will see another light day on the economic calendar. Several Federal Reserve officials will give speeches, including Governor Michelle Bowman, and regional presidents Loretta Mester of Cleveland and Raphael Bostic of Atlanta, who will appear on CNBC around 8 a.m. ET.

Bond yields cooled off Wednesday amid a dramatic surge in 2022. The benchmark 10-year Treasury note most recently yielded 1.93%.

On Tuesday, the Dow Jones Industrial Average added more than 370 points, helped by a 7.8% pop in Amgen on the back of its strong earnings report. The S&P 500 also registered a gain, climbing 0.8%. The technology-focused Nasdaq Composite rose 1.3%.

A handful of strong corporate earnings boosted sentiment on Tuesday, after a slow start to the week. Harley-Davidson, Chegg, DuPont and Centene all rose after reporting better-than-expected earnings.

As of the closing bell on Tuesday, nearly 60% of all S&P 500 companies have reported fourth-quarter earnings and roughly 77% have topped Wall Street’s earnings estimates, according to FactSet.

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“We are wrapping up a very solid earnings season,” said Ryan Detrick of LPL Financial. “Sure, we had a high-profile blowup at Facebook, but overall we’ve seen impressive news from corporate America.”

High-interest earnings reports on Wednesday include CVS Health, Fox Corp., GlaxoSmithKline and Yum Brands before the bell. Disney, Mattel, MGM Resorts and Uber Technologies will release results after the bell on Wednesday.

Investors are also preparing for Thursday’s Consumer Price Index report, which will give an update on the inflation picture. The Fed has already signaled a monetary policy pivot in order to address the historically high price increases.

The CPI report “has had a big bullseye on it all week and the truth is that headline number will likely be one of the highest we’ve ever seen,” Detrick said. “Now the good news is we are likely close to a major peak in inflation and this number very well could be the peak. We’ve seen some improvements in supply chains lately and this is the first clue we are nearing a peak in inflation as well.”

The inflation data is estimated to show that prices rose 0.4% in January, for a 7.2% gain from one year ago, according to Dow Jones.

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