U.S. equity futures have bounced from Wednesday's ugly finish with the S&P 500 futures climbing 20 points above fair value. Reassuring earnings reports, relative strengths in foreign markets, and an expectation that the market was due for a rebound following Wednesday's sharp drop have contributed to this morning's rally in the futures market. While the early gains are encouraging, market participants will be much more eager to see whether equities can maintain their early strength until the closing bell.
A slew of upbeat earnings reports since yesterday's close, including results from the likes of Microsoft (MSFT), Tesla (TSLA), and Twitter (TWTR), have appeased investors. Heavily-weighted Microsoft reported above-consensus top and bottom lines, while Tesla posted a surprise profit. For its part, Twitter beat earnings and revenue estimates. Tesla (+9.2%) and Twitter (+10.8%) shares are currently soaring in pre-market trade while Microsoft is up 2.6%.
Looking ahead, FANG members Amazon (AMZN) and Alphabet (GOOG) will headline this evening's batch of quarterly reports.
Investors received several pieces of economic data this morning. Weekly Initial Claims (actual 215K; Briefing.com consensus 211K) stayed true to trend while the Durable Orders report for September (actual 0.8%; Briefing.com consensus -1.8%) exceeded expectations thanks to growth in transportation equipment orders and orders for defense aircraft and parts. Excluding transportation, durable orders increased just 0.1% (Briefing.com consensus 0.3%) in September. On the housing front, yesterday's disappointing New Home Sales report for September (actual 553K; Briefing.com consensus 625K) will be followed by the 10:00 ET release of September Pending Home Sales (Briefing.com consensus -0.2%).
U.S. Treasuries have seen some light selling on the long end while the 2-yr note has shown some slight strength. The 2-yr yield is unchanged at 2.86% while the 10-yr yield is up two basis points to 3.14%. The U.S. Dollar Index is down 0.1% at 96.30 after overtaking its October high during yesterday's session.