Stocks set to open higher on Wednesday

Wall Street

Futures point to positive start

U.S. stocks are set to open in the green on Wednesday even as market participants continue to monitor rise in coronavirus cases across Europe.

On Tuesday, U.K. Prime Minister Boris Johnson told the public to expect six more months of coronavirus restrictions and warned of unquestionably difficult months to come. According to the latest government figures published on Sept. 22, the U.K. reported 4,926 cases, making it the highest number since early May.

Also yesterday the U.S. House of Representatives approved a short-term spending bill that will keep the government funded through Dec 11, avoiding a shutdown when funding expires in eight days.

As of 5:30 a.m. ET, futures tied to the Dow were indicated 207 points, or 0.76% higher to 27,350. The S&P 500 futures advanced 16.58 points, or 0.50% to 3,315.88 while the tech-heavy Nasdaq 100 futures added 52 points, or 0.47% to 11,201.50.

Tesla falls following its Battery Day event

Tesla (NASDAQ: TSLA) shares were trading lower in the pre-market trading session Wednesday following its highly anticipated “Battery Day” yesterday.

CEO Elon Musk made several announcements including a new cathode plant to streamline Tesla’s battery production and a new Plaid powertrain for the Model S that will have a top speed of 200 mph.

However, new innovations remain a distant objective. According to Musk, “about 3 years from now, we’re confident we can make a very compelling $25,000 electric vehicle that’s also fully autonomous.”

Analysts expected an array of announcements from plans for a significant ramp in production capacity and a battery that will last 1 million miles before needing replacement.

Tesla shares were trading $25.23, or 5.95% lower to $399 each in pre-market hours.

Nike surges on blowout earnings

Nike (NYSE: NKE) soared early Wednesday after the company reported stronger-than-expected results for its first fiscal quarter.

The athletic apparel company had net income of $1.52 billion, or $0.95 per share, compared with $1.37 billion, or $0.86 per share, in the same period last year. Revenue came in at $10.59 billion, down from $10.66 billion in the year-ago quarter.

Analysts polled by Refinitiv had forecast earnings of $0.47 per share on revenue of $9.14 billion.

As of this writing, the Nike stock was up $14.73, or 12.60% to $131.60 a share in pre-market trade.