* Futures: Dow up 0.02%, S&P 500 up 0.01%, Nasdaq down
0.1%
* Bank of America ( BAC ), Morgan Stanley ( MS ) gain after results
* Broadcom ( AVGO ) rises 2% after Meta extends chip deal
(Updates before market open)
By Niket Nishant and Utkarsh Hathi
April 15 (Reuters) - Wall Street's main indexes were
poised for a subdued open on Wednesday as investors paused after
a recent rally to take stock of the latest developments in the
Middle East conflict and a fresh batch of corporate earnings.
Equities have found support this week on hopes that
Washington and Tehran could return to the negotiating table to
end the war.
The resilience suggests that war-weary investors are ready
to rotate into risk assets at the slightest indication of a
de-escalation.
"The market is cautiously optimistic that we can get back to
peace with Iran. And thus far, the earnings have been very
good," said Art Hogan, chief market strategist at B. Riley
Wealth.
The benchmark S&P 500 index is nearing its first
intraday record high since the conflict erupted. The S&P 500 and
the tech-heavy Nasdaq have recouped all their losses
since the war began.
New catalysts, however, may be needed to sustain the
momentum in stocks.
"We're going to need more concrete evidence now that the
folks that want to get together and talk about peace are able to
accomplish something before the deadline of this ceasefire,"
Hogan said.
At 08:23 a.m. ET, Dow E-minis were up 12 points,
or 0.02%, S&P 500 E-minis rose 0.5 point, or
0.01%, while Nasdaq 100 E-minis lost 26 points, or 0.1%.
Some analysts have warned that as stocks climb, they could
become more vulnerable to sharp reversals if developments in the
Middle East do not match the optimistic assumptions many are
pricing in.
"U.S. equities appear to be looking through risks still
being priced in commodity markets," BofA Global Research
analysts said.
The International Monetary Fund cut its outlook for global
growth on Tuesday, citing the war-driven energy price spikes,
and warned that an extended conflict could push the world to the
brink of a recession.
BANK RESULTS IN SPOTLIGHT
Another packed day for earnings from financial heavyweights
will be in focus as investors look for signs of how companies
are navigating the impact of the war.
Bank of America ( BAC ) shares rose 1% in premarket trading
after the second-biggest U.S. lender reported growth in its
first-quarter profit.
Wall Street heavyweight Morgan Stanley's ( MS ) shares added
2.5% after it also reported a jump in first-quarter profit.
So far this week, banks have said U.S. consumers are
financially healthy and that pipelines for initial public
offerings and deals should remain robust unless the conflict
drags on for much longer.
Oil prices gained slightly on Wednesday, remaining 31% above
pre-war levels.
Traders will also tune in to the remarks from Federal
Reserve Governor Michael Barr and Fed Vice Chair for Supervision
Michelle Bowman later in the day.
Among other stock movers, Nike ( NKE ) rose 2.8% after CEO
Elliott Hill bought additional stock in the company.
Broadcom ( AVGO ) advanced 2% after Meta extended
its custom chips deal with the firm.
Snap's shares rose nearly 7% after the social media
company said it would lay off about 1,000 employees.