Futures Pointing to Higher Open Ahead of Fed Minutes

By Investors Hub

The major U.S. index futures are pointing to a higher opening on Wednesday, with stocks poised to add to the gains posted in the previous session.

The markets may continue to benefit from optimism about the economic outlook after Republicans approved a massive tax reform bill last month.

Nonetheless, traders may be somewhat reluctant to make significant moves ahead of the release of the minutes of the latest Federal Reserve meeting this afternoon.

Following the long, holiday weekend, stocks moved mostly higher during trading on Tuesday. The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts.

While the Nasdaq soared 103.51 points or 1.5 percent to 7,006.90, the S&P 500 climbed 22.20 points or 0.8 percent to 2,695.81 and the Dow rose 104.79 points or 0.4 percent to 24,824.01.

The strength on Wall Street came as traders expressed optimism about the outlook for the markets and the economy going into the new year.

Trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

The economic calendar for the week starts off relatively quiet, although the closely watched monthly jobs report is likely to attract considerable attention on Friday.

Traders are also likely to keep an eye on reports on manufacturing and service sector activity, construction spending, private sector employment, international trade, and factory orders.

Steel stocks saw substantial strength on the day, with the NYSE Arca Steel Index jumping by 4.3 percent. With the gain, the index reached its best closing level in over three years.

The rally by steel stocks came as upbeat manufacturing data out of China has generated optimism about the outlook for global steel demand.

Significant strength was also visible among gold stocks, as reflected by the 3.3 percent spike by the NYSE Arca Gold Bugs Index. The strength in the sector came amid an increase by the price of gold.

Electronic storage, natural gas, semiconductor, and biotechnology stocks also saw notable strength, moving higher along with most of the other major sectors.