By Peter Nurse
Investing.com - U.S. stocks are seen opening slightly higher Wednesday, helped by optimism over a potential coronavirus stimulus package, but gains will be limited by disappointing news from streaming giant Netflix (NASDAQ:NFLX).
At 07:00 AM ET (1100 GMT), S&P 500 Futures traded 3 points, or 0.1%, higher, the Dow Futures contract rose just 4 points, while Nasdaq 100 Futures climbed 24 points, or 0.2%.
Confidence is growing that U.S. lawmakers can come to an agreement over a new coronavirus relief package, after White House chief of staff Mark Meadows said late Tuesday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made “good progress” on stimulus talks.
President Donald Trump added that he was willing to accept a large aid bill, in opposition to some members of his own Republican party in the Senate, and negotiations are set to continue on Wednesday.
The two sides have struggled for months to overcome fundamental disagreements over additional stimulus, including the size of the deal and the measures covered, as the coronavirus pandemic continues to stunt economic growth.
Elsewhere, Netflix (NASDAQ:NFLX) posted disappointing numbers late Tuesday for paid subscriber growth in the third quarter, adding 2.2 million paid subscribers globally during the quarter that ended Sept. 30, compared with analysts' estimates for 3.4 million. Revenues were also weaker than anticipated.
This sent its shares tumbling over 5.5% in after-hours trading, on concerns that its momentum is slowing.
The earnings season continues apace Wednesday, with electric-vehicle maker Tesla (NASDAQ:TSLA) poised to post a profit when it reports after the close.
There are a number of healthcare related stocks due, with Abbott Laboratories (NYSE:ABT), Thermo Fisher Scientific (NYSE:TMO), Edwards Lifesciences (NYSE:EW) and Biogen (NASDAQ:BIIB) all expected to report. Verizon Communications (NYSE:VZ), Las Vegas Sands (NYSE:LVS) and CSX (NASDAQ:CSX) are also due.
The main economic release Wednesday is the Federal Reserve's October Beige Book, at 2 PM ET (1800 GMT), which should provide a snapshot from businesses and communities about how the resurgence of Covid is being felt across the country.
Oil prices fell Wednesday after the American Petroleum Institute reported Tuesday a surprise increase in crude inventories last week. Investors are now looking to data from the U.S. Energy Information Administration, due later in the day, for corroboration.
U.S. crude futures traded 1.7% lower at $41.01 a barrel, while the international benchmark Brent contract fell 1.5% to $42.53.
Elsewhere, gold futures rose 0.3% to $1,921.95/oz, while EUR/USD traded 0.3% higher at 1.1858.