After moving modestly higher over the course of the previous session, stocks may see some further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 32 points.
The upward momentum for the markets reflects optimism ahead of Federal Reserve Chairman Ben Bernanke's highly-anticipated testimony before the Joint Economic Committee of Congress.
While Fed officials have recently delivered mixed remarks regarding the outlook for the central bank's asset purchase program, Bernanke is expected to offer support for leaving monetary policy unchanged in the near future.
Michael Gregory, senior economist at BMO Capital Markets, said, "Traditionally this annual congressional confab ranks among the Chairman's most important policy pronouncements."
"Although the venue has lost some of its luster with the advent of quarterly, post-FOMC press conferences and the rise of the KC Fed's annual symposium in Jackson Hole, it remains one to watch," he added.
Along with Bernanke's remarks, traders are also likely to keep an eye on the National Association of Realtor's monthly report on existing home sales.
Economists expect the report to show that existing home sales rose to an annual rate of 5.0 million in April from 4.92 million in March.
Later in the day, the Federal Reserve is scheduled to release the minutes of the last Federal Open Market Committee meeting held April 30th and May 1st.
The minutes are likely to show signs of the ongoing debate regarding the outlook for the asset purchase program, although the news may be overshadowed by Bernanke's more up-to-date remarks.
In corporate news, shares of NetApp (NTAP) are moving sharply higher in pre-market trading after the data storage company reported fiscal fourth quarter earnings that came in just above analyst estimates. The company also initiated a quarterly dividend of $0.15 per share and announced plans to cut 900 jobs.
Luxury homebuilder Toll Brothers (TOL) is also likely to see early strength after reporting much stronger than expected second quarter earnings growth.
Meanwhile, shares of Target (TGT) are likely to come under pressure in early trading after the discount retailer reported weaker than expected first quarter earnings and lowered its full-year earnings guidance.
While buying interest was relatively subdued, stocks moved modestly higher over the course of the trading day on Tuesday. The strength on the day offset the weakness seen on Monday, with the Dow and the S&P 500 reaching new record closing highs.
The major averages gave back some ground in late-day trading but remained in positive territory. The Dow ended the day up 52.30 points or 0.3 percent at 15,387.58, the Nasdaq rose 5.69 points or 0.2 percent to 3,502.12 and the S&P 500 climbed 2.87 points or 0.2 percent to 1,669.16.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index surged up by 1.6 percent, while Hong Kong's Hang Seng Index fell by 0.5 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index has edged up by 0.2 percent, the French CAC 40 Index and the German DAX Index are down by 0.2 percent and 0.1 percent, respectively.
In commodities trading, crude oil for July delivery is sliding $0.24 to $95.94 a barrel in its first day of trading as the front month contract. Meanwhile, an ounce of gold is trading at $1,393.10, up $15.50 from the previous session's closing price of $1,377.60. On Tuesday, gold fell $6.50.
On the currency front, the U.S. dollar is trading at 103.04 yen compared to the 102.49 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.2927 compared to yesterday's $1.2906.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.