By Peter Nurse
Investing.com -- U.S. stocks are seen opening slightly higher Wednesday, adding to impressive earnings-inspired recent gains helped by strong results from streaming giant Netflix (NASDAQ:NFLX).
At 07:00 ET (11:00 GMT), the Dow Futures contract was up 30 points, or 0.1%, S&P 500 Futures traded 7 points higher, of 0.2%, and Nasdaq 100 Futures climbed 35 points, or 0.3%.
The main U.S. equity indices closed higher Tuesday, with the blue-chip Dow Jones Industrial Average gaining over 300 points, or 1.1%. The broad-based S&P 500 recorded a 1.1% gain and the tech-heavy Nasdaq Composite rose 0.9%.
Generally positive corporate earnings have helped U.S. equities post strong gains over the last few days, and stronger-than-expected quarterly results after Tuesday’s close from Netflix added to sentiment, easing investor concerns about growth in one of the hardest hit sectors this year.
Netflix stock traded about 13% higher premarket after the subscription streaming service reversed customer losses that had hammered its stock this year, forecasting that it would pick up 4.5 million customers in the fourth quarter.
Earnings continue this week, with the likes of Tesla (NASDAQ:TSLA), IBM (NYSE:IBM), and Procter & Gamble (NYSE:PG) scheduled to release results Wednesday.
That said, worries about a recession continue to persist as the Federal Reserve heads straight toward what is widely expected to be a fourth-straight interest rate hike of 75 basis points early next month.
“U.S. equities have priced the most (but not enough) recession risk, and earnings estimates have further to adjust,” said strategists at Citigroup, in a note. “U.S. bonds have priced the least risk, but it will take some time before bonds react to recession risks given the hawkish Fed.”
Economic data due later Wednesday includes building permits and housing starts for September, and will provide clues on how the housing market is holding up with mortgage rates climbing.
The Fed’s Beige Book will also give investors a glimpse of business and economic conditions from various parts of the country.
Oil prices headed higher Wednesday, climbing above recent two-week lows, helped by signs of consistent U.S. demand, the largest consumer in the world.
U.S. crude oil stocks fell by about 1.3 million barrels for the week ended Oct. 14, according to data from the American Petroleum Institute figures, released Tuesday, suggesting oil consumption in the U.S. remains steady despite headwinds from rising inflation and interest rates.
Official figures from the Energy Information Administration are due later in the session.
By 07:00 ET, U.S. crude futures traded 1.3% higher at $83.14 a barrel, while the Brent contract rose 1% to $91.00.
Both contracts fell substantially on Tuesday after the White House revealed plans to release 15 million barrels of oil from its Strategic Petroleum Reserve by December.
Additionally, gold futures fell 1.1% to $1,637.45/oz, while EUR/USD traded 0.7% lower at 0.9780.