US Markets

Dow futures rise 126 points ahead of Fed decision; Facebook and Tesla earnings ahead

Key Points
  • The U.S. Federal Open Market Committee is expected to kick-start the second and final day of its regular monetary policy meeting
  • Dow Jones industrial average futures rose 126 points, while S&P 500 and Nasdaq 100 futures advanced 10 points and 29 points, respectively.
Stock futures higher on first trading day of November
VIDEO1:2101:21
Stock futures higher on first trading day of November

U.S. stock index futures pointed to a sharply higher open Wednesday, as investors prepared themselves for the latest cluster of corporate earnings ahead of a decision by the U.S. central bank.

Dow Jones industrial average futures rose 126 points, while S&P 500 and Nasdaq 100 futures advanced 10 points and 29 points, respectively.

Futures took their cue from overseas equity markets, which also traded higher. The Stoxx 600 index, which is composed of a broad swath of European stocks, rose 0.6 percent. In Asia, the Japanese Nikkei 225 rose 1.9 percent.

While a meeting by the U.S. Federal Reserve is expected to be on the minds of investors, a whole host of major brands are also set to publish their latest earnings during the day.

The Facebook Inc. logo is displayed with price valuations on monitors during trading at the Nasdaq MarketSite in New York, U.S., on Friday, May 18, 2012.
Scott Eells | Bloomberg | Getty Images

After the bell, Facebook, Kraft Heinz, Qualcomm, Tesla, Shake Shack, Cheesecake Factory, Fitbit and Symantec are also set to issue their latest financial figures.

On the data front, the U.S. private sector added 235,000 jobs in October, according to a report from ADP and Moody's. Economists polled by Reuters expected a gain of 200,000 jobs.

US manufacturing PMI is expected at 9:45 a.m. ET; and, at 10 a.m. ET, the manufacturing ISM report on business and construction spending data are due.

On the central bank front, the U.S. Federal Open Market Committee is due to kick-start the second and final day of its regular monetary policy meeting. Investors will be looking out for the FOMC's announcement at 2 p.m. ET, which will include an interest rate decision and commentary on the state of the U.S. economy.

Speaking of the Fed, President Donald Trump is expected to announce his pick for the next chair of the central bank Thursday. While there are five key candidates for the role, Fed Governor Jerome Powell has been the recent favorite.

Finally in commodities news, oil prices extended gains in early trade after fresh data revealed that oil cartel OPEC had improved its level of compliance considerably. At 8:19 a.m. ET, U.S. crude was trading around $54.98, while Brent hovered around $61.50 per barrel.