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* General Motors raises after less-than-expected loss
* Starbucks sees businesses ‘constantly recovering’, shares
* Boeing shares rise after results
* Advanced Micro Devices increases after revenue forecast increase
* Futures on the rise: Dow 0.23%, S&P 0.35%, Nasdaq 0.67% (Add price, details; Update prices)
By Medha Singh and Devik Jain
July 29 (Reuters) – Major Wall Street indexes would open higher on Wednesday due to a series of positive earnings updates and hopes for a moderate tone from the Federal Reserve overshadowed concerns about next steps for the plan. government coronavirus support.
General Motors Co. rose 4.6% in the prior market after posting a lower-than-expected loss for the second quarter, helped by truck sales and the aggressive cost reduction.
Advanced Micro Devices Inc increased 11% after the chipmaker raised its full-year revenue forecast, driven in part by an overall surge in chip demand and market share gains from its largest rival Intel Corp. .
Of the 163 S&P 500 companies that have reported results, 79.1% have passed a low bar of quarterly earnings expectations, according to data from Refinitiv IBES, well above the average of 59% of companies that beat estimates. of earnings in the last four quarters.
Recent data points to a possible slowdown in business and hiring as infections increased in the southern and western states of the U.S., and deaths from the new coronavirus approached 150,000 in the country on Wednesday.
Investors will keep a close eye on how the US central bank addresses these economic risks at the end of its two-day meeting on Wednesday.
No major political decisions are expected in the Fed statement at 2 pm ET (1800 GMT), which will be followed by President Jerome Powell’s press conference.
Emergency monetary stimulus measures along with trillions of dollars in fiscal support have been instrumental in driving a strong recovery in the US stock markets since March.
“The biggest catalyst in the market right now, at least for bullish sentiment, is where the next wave of liquidity is,” said Andrew Smith, chief investment strategist, Dallas-based Delos Capital Advisors.
Republicans in the United States Congress, the White House, and Democrats were still struggling to find a deal on the $ 1 trillion coronavirus aid package as the expiration of an improved coronavirus unemployment benefit approached. $ 600 per week.
At 8:24 am ET, Dow e-minis rose 61 points, or 0.23%. S&P 500 e-minis were up 11.25 points, or 0.35%, and Nasdaq 100 e-minis were up 70.25 points, or 0.67%.
Boeing Co said it would cut production on its 787 and 777 aircraft programs and reported a higher-than-expected quarterly loss due to the consequences of the pandemic. The company’s shares rose 1.3% after the results.
Industrial conglomerate General Electric Co. rose 2.3% after reporting lower-than-expected cash outflows in its industrial business.
Starbucks Corp rose 5.2% after the coffee chain said the business was “steadily recovering” worldwide and would return to profitability in the current quarter.
CEOs of Amazon.com Inc, Facebook Inc, Apple Inc and Alphabet’s Google will face an antitrust hearing in Congress on Wednesday, marking their first time before lawmakers together.
All four companies are scheduled to report the results on Thursday. (Report by Medha Singh and Devik Jain in Bangalore; Shounak Dasgupta edition)
