* Futures up: Dow 0.02%, S&P 500 0.3%, Nasdaq 0.7%
* BlackRock ( BLK ), Morgan Stanley ( MS ) gain after Q2 profit beat
* PayPal ( PYPL ) soars after report of buyout offer
(Updates before market open)
By Ragini Mathur and Avinash P
July 15 (Reuters) - Wall Street's main indexes were headed
for a higher open on Wednesday, as investors weighed
softer-than-expected producer inflation data and a flurry of
corporate earnings, while PayPal ( PYPL ) surged on reports of a $53
billion takeover offer.
Strong results from major banks for the second day in a row
helped sustain an upbeat note for the second-quarter earnings
season.
BlackRock ( BLK ) shares advanced 5.1% in premarket trading,
after the asset manager beat profit expectations, as a stock
market rally boosted the value of client assets.
Morgan Stanley ( MS ) also beat Wall Street estimates for
second-quarter profit, driven by strong mergers and acquisitions
activity. Its shares were up 0.5%.
"The large banks continue to demonstrate the strength of the
U.S. consumer and corporate balance sheets. Healthy banks are
typically a positive signal for the broader economy, and the
tone of this earnings season that is underway is a positive
one," said Charlie Anderson, senior vice president, UBS Wealth
Management.
PayPal Holdings ( PYPL ) jumped nearly 19.5% after sources
told Reuters payments company Stripe and private equity firm
Advent International have jointly offered to acquire it for
$60.50 per share - representing around a 28% premium to its
Tuesday close.
Data showed the Producer Price Index for final demand
unexpectedly fell 0.3% in June, compared with forecasts for a
flat reading, adding to signs that inflation was easing. The
report followed Tuesday's softer-than-expected consumer
inflation data, which reduced expectations for an imminent
Federal Reserve rate hike.
"With the Fed offering limited forward guidance, each
inflation reading is prompting more volatility in rate
expectations," said Charlie Ripley, portfolio manager at Allianz
Investment Management.
Traders now see about a 16% chance of a quarter-point rate
increase at the Fed's next meeting, down from nearly 41% before
the CPI report, according to CME's FedWatch tool.
Wednesday also marks the second day of Federal Reserve Chair
Kevin Warsh's testimony before Congress. Warsh told lawmakers on
Tuesday that one data point was not enough to declare victory
over inflation.
At 08:56 a.m. ET, Dow E-minis were up 114 points, or
0.22%, and S&P 500 E-minis were up 21.75 points, or
0.29%. Nasdaq 100 E-minis were up 200.25 points, or
0.67%.
The earnings season is gathering pace at a crucial point for
equities. The S&P 500 has climbed more than 10% this year and
closed Tuesday less than 1% below its June record closing high,
leaving the rally vulnerable to any disappointment in corporate
results.
Chip stocks were mostly higher, helping lift Nasdaq futures.
U.S.-listed shares of ASML rose 2.5% after the Dutch
semiconductor equipment maker raised its 2026 financial
forecasts, reassuring investors about the strength of AI-driven
demand.
Geopolitical tensions also remained in focus after the U.S.
said it had begun a new wave of strikes against Iran after
reimposing a naval blockade of Iranian ports, while Iran
threatened to curb more regional energy exports.
Elevance Health ( ELV ) tumbled 6.8% even after raising its
annual profit forecast, as the revision fell short of investors'
lofty expectations.
(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing
by Joyjeet Das)