Following the mixed performance seen in the previous session, stocks may move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 91 percent.
Positive sentiment may be generated in reaction to remarks by Chinese President Xi Jinping at opening of the 19th Communist Party Congress.
Xi conveyed a positive view of the Chinese economy and indicated China will move forward with reforms aimed at further opening its market to foreign investors.
“China’s open door will not be closed — it will be only be opened wider,” Xi said as the week-long, once-in-five-years Congress got underway.
Traders may also react positively to some of the latest earnings news, with tech giant IBM (IBM) seeing pre-market strength after reporting better than expected third quarter results.
Alcoa (AA), American Express (AXP), eBay (EBAY), and United Continental (UAL) are among the companies due to report their quarterly results after the close of trading.
Nonetheless, trading activity may be somewhat subdued ahead of the release of the Federal Reserve’s Beige Book this afternoon.
The Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, may shed additional light on the outlook for interest rates.
In economic news, the Commerce Department released a report showing a much bigger than expected slump in housing starts in the month of September.
The Commerce Department said housing starts plunged by 4.7 percent to an annual rate of 1.127 million in September from the revised August estimate of 1.183 million. Housing starts has been expected to edge down by 0.5 percent.
Building permits, an indicator of future housing demand, also tumbled by 4.5 percent to an annual rate of 1.215 million in September from a revised 1.272 million in August. Economists had expected building permits to drop by 2.9 percent.
After ending Monday’s trading modestly higher, stocks showed a…