Wall St set to open higher as investors weigh earnings; PayPal jumps

Wednesday also marks the second day of Federal Reserve Chair Kevin Warsh's testimony before Congress. Warsh told lawmakers on Tuesday that one data point was not enough to declare victory over inflation. At 08:56 a.m. ET, Dow E-minis were up 114 points, or 0.22%, and S&P 500 E-minis were up 21.75 points, or 0.29%. Nasdaq 100 E-minis were up 200.25 points, or 0.67%. The earnings season is gathering pace at a crucial point for equities. The S&P 500 has climbed more than 10% this year and closed Tuesday less than 1% below its June record closing high, leaving the rally vulnerable to any disappointment in corporate results. Chip stocks were mostly higher, helping lift Nasdaq futures. U.S.-listed shares of ASML rose 2.5% after the Dutch semiconductor equipment maker raised its 2026 financial forecasts, reassuring investors about the strength of AI-driven demand. Geopolitical tensions also remained in focus after the U.S. said it had begun a new wave of strikes against Iran after reimposing a naval blockade of Iranian ports, while Iran threatened to curb more regional energy exports. Elevance Health tumbled 6.8% even after raising its annual profit forecast, as the revision fell short of investors' lofty expectations. BlackRock shares advanced 5.1% in premarket trading, after the asset manager beat profit expectations, as a stock market rally boosted the value of client assets. Morgan Stanley also beat Wall Street estimates for second-quarter profit, driven by strong mergers and acquisitions activity. Its shares were up 0.5%. "The large banks continue to demonstrate the strength of the U.S. consumer and corporate balance sheets. Healthy banks are typically a positive signal for the broader economy, and the tone of this earnings season that is underway is a positive one," said Charlie Anderson, senior vice president, UBS Wealth Management. PayPal Holdings jumped nearly 19.5% after sources told Reuters payments company Stripe and private equity firm Advent International have jointly offered to acquire it for $60.50 per share — representing around a 28% premium to its Tuesday close. Data showed the Producer Price Index for final demand unexpectedly fell 0.3% in June, compared with forecasts for a flat reading, adding to signs that inflation was easing. The report followed Tuesday's softer-than-expected consumer inflation data, which reduced expectations for an imminent Federal Reserve rate hike. "With the Fed offering limited forward guidance, each inflation reading is prompting more volatility in rate expectations," said Charlie Ripley, portfolio manager at Allianz Investment Management. Traders now see about a 16% chance of a quarter-point rate increase at the Fed's next meeting, down from nearly 41% before the CPI report, according to CME's FedWatch tool. Wall Street's main indexes were headed for a higher open on Wednesday, as investors weighed softer-than-expected producer inflation data and a flurry of corporate earnings, while PayPal surged on reports of a $53 billion takeover offer. Futures were up: Dow 0.02%, S&P 500 0.3%, Nasdaq 0.7%. Strong results from major banks for the second day in a row helped sustain an upbeat note for the second-quarter earnings season.

Wall St set to open higher as investors weigh earnings; PayPal jumps

Other movers and market backdrop

BlackRock and Morgan Stanley beat estimates

PayPal jumps on takeover report as inflation data cools rate bets

Wall Street set for a higher open on cooler inflation and earnings

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