U.S. stock index futures edged higher on Wednesday as investors parsed a flurry of corporate earnings and focused on producer inflation statistics to be released later in trading, while PayPal shares soared on reports of a $53 billion takeover offer.
BlackRock shares rose 4.4% in pre-market trading as a rising stock market boosted the value of client assets and the asset manager beat second-quarter profit estimates.
Investors are now awaiting numbers from Morgan Stanley for further clues about the financial company’s health and capital market activity. The company’s stock price rose 1.6%.
Big U.S. banks started their second-quarter earnings season Tuesday with stronger-than-expected results, buoyed by strong trading and a rebound in trading.
PayPal Holdings Inc. soared nearly 22% after a source told Reuters that payments company Stripe and private equity firm Advent International jointly offered to buy it for $60.50 a share. This represents a premium of about 28% to Tuesday’s closing price.
“The payments sector has long been a hotbed for takeover activity, and some may wonder why PayPal hasn’t been busted yet,” said Dan Coatsworth, head of markets at AJ Bell.
“Stripe and Advent clearly see an opportunity to acquire companies that are distressed but not out of business.”
Earnings season is accelerating at a critical time for the stock market. The S&P 500 index has risen more than 10% this year, and Tuesday’s close was less than 1% below June’s closing high, leaving stock gains vulnerable to disappointing corporate results.
Tuesday’s softer-than-expected Consumer Price Index (CPI) data eased concerns about an impending Federal Reserve rate hike, with investors also keeping an eye on the Producer Price Index (PPI) report for more evidence on inflation trends.
Markets are currently pricing in a roughly 17% chance of a quarter-point rate hike at the next policy meeting, according to CME’s FedWatch tool. Before the release of the CPI data, the same probability was about 41%.
Wednesday also marks the second day of Federal Reserve Chairman Kevin Warsh’s congressional testimony. Warsh told lawmakers Tuesday that one data point is not enough to declare victory over inflation.
As of 7 a.m. ET, the Dow E-mini was up 11 points, or 0.02%, the S&P 500 E-mini was up 12 points, or 0.16%, and the Nasdaq 100 E-mini was up 160.25 points, or 0.54%.
Semiconductor stocks generally rose, contributing to the rise in Nasdaq futures. ASML’s U.S.-listed shares rose 3.6% after the Dutch semiconductor equipment maker revised its 2026 earnings forecast upwards and reassured investors of the strength of AI-driven demand.
On the geopolitical front, Iranian media reported that Iran’s Islamic Revolutionary Guard Corps threatened to close “all other export corridors benefiting the United States and its allies” after Iran closed the Strait of Hormuz and the United States reimposed a naval blockade of Iranian ports.
Shares of Elevance Health and Johnson & Johnson fell 7.2% and 1.7%, respectively, after reporting their quarterly results.
(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Joyjeet Das)
