Wall St Eyes Higher Open On Upbeat Earnings, Factory Data In Focus

U.S. stock indexes were set to open higher on Wednesday after robust quarterly earnings from luxury retailers and Salesforce Inc, while investors awaited factory activity data for cues on the strength of the U.S. economy.

Salesforce jumped 10.4% in premarket trading after the enterprise software firm raised its full-year adjusted profit outlook and said it did not see any material impact from the uncertain broader economic environment.

Construction spending data and ISM manufacturing purchasing managers' index reading for May is scheduled to be released after market opens.

Investors will also parse comments from St. Louis Federal Reserve President James Bullard and New York Fed President John Williams, due to speak later in the day, for clues on the timeline of monetary policy tightening.

As part of the plan to combat inflation, the U.S. central bank on Wednesday will also begin trimming its $9 trillion balance sheet which it amassed to support the economy amid the COVID-19 pandemic.

Hawkish comments from Fed Governor Christopher Waller and higher oil prices sapped risk appetite on Tuesday, with Wall Street's three major indexes closing lower following a rally last week.

"It's important for investors to remember the Fed is not here to be supportive of markets but to be supportive of the economy. What the individual committee members say is important because they're pieces of a whole," said Sylvia Jablonski, chief investment officer of Defiance ETF.

Uncertainty about the U.S. central bank's policy move, the war in Ukraine, prolonged supply chain snarls due to COVID lockdowns in China and higher Treasury yields have rocked stock markets, with the benchmark S&P 500 index falling 13.3% year-to-date.

At 09:01 a.m. ET, Dow e-minis were up 193 points, or 0.59%, S&P 500 e-minis were up 15.5 points, or 0.38%, while the Nasdaq 100 e-minis were up 40.25 points, or 0.32%.

The PMI report will be followed by ADP private payrolls on Thursday and the Labor Department's closely watched nonfarm payrolls data on Friday, which will provide more insights into how the jobs market is faring amid a labor crunch and rising costs.

Capri Holdings Ltd gained 5.6% after the Michael Kors owner posted upbeat fourth-quarter results and lifted its full-year profit outlook, signaling robust demand for its luxury goods.

Victoria's Secret climbed 11.0% after the lingerie brand topped first-quarter profit estimates as costs fell.