U.S. stocks are expected to open higher later, as the market recovers its nerve after a sharp sell-off in response to Yellen’s comments on Tuesday. Tech stocks, which fell most sharply on Tuesday due to their interest-rate sensitivity, were posting the highest gains in premarket trading.
Stocks likely to be in focus later include Lyft (NASDAQ:LYFT), which reported another strong month of passenger numbers after the bell on Tuesday and reiterated its goal of an adjusted EBITDA profit by the third quarter. Automakers will also be in focus, with General Motors (NYSE:GM) set to report early. Stellantis, the owner of Jeep, rose 2.6% in Europe after reporting quarterly numbers ahead of expectations, despite problems with chip supplies.
Component group BorgWarner also reports early, as do Exelon (NASDAQ:EXC) and Sempra Energy (NYSE:SRE), whose results will be marked by the winter storms across Texas and much of the rest of the south. Hilton Worldwide, AmerisourceBergen (NYSE:ABC) and Paypal are all due to report too.
NASDAQ has shown some recovery this morning as seen on the chart above.
On a technical perspective we should see a test of the $13720-$13760 range as this will be the first significant point of resistance that could halt any further upside pressure. With more earnings expected and estimates smashed, the real question at the moment for most economists is what is really driving equity markets?