U.S. Stocks May See Further Upside In Early Trading

Stocks may move to the upside in early trading on Wednesday, extending the advance seen over the three previous sessions. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.1 percent.

The futures moved higher following the release of a report from payroll processor ADP showing a notable slowdown in the pace of private sector job growth in the month of August.

ADP said private sector employment climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.

Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.

The slightly smaller than expected increase in private sector employment may add to recent optimism about the outlook for interest rates.

Separately, revised data released by the Commerce Department showed the U.S. economy grew by less than previously estimated in the second quarter.

The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1 percent from the previously reported 2.4 percent. Economists had expected the pace of GDP growth to be unrevised.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on pending home sales in the month of July. Pending home sales are expected to decrease by 0.6 percent in July after rising by 0.3 percent in June.

Stocks moved sharply higher during trading on Tuesday, extending the upward move seen over the two previous sessions. The major averages all moved to the upside, with the tech-heavy Nasdaq posting a standout gain.

The major averages finished the session just off their best levels of the day. The Nasdaq surged 238.63 points or 1.7 percent to 13,943.76, the S&P 500 jumped 64.32 points or 1.5 percent to 4,497.63 and the Dow advanced 292.69 points or 0.9 percent to 34,852.67.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index rose by 0.3 percent, while Australia’s S&P/ASX 200 Index jumped by 1.2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.2 percent.

In commodities trading, crude oil futures are rising $0.46 to $81.62 a barrel after jumping $1.06 to $81.16 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,970.70, up $5.60 compared to the previous session’s close of $1,965.10. On Tuesday, gold climbed $18.30.

On the currency front, the U.S. dollar is trading at 146.03 yen compared to the 145.88 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0911 compared to yesterday’s $1.0880.