Stocks are likely to move to the upside in early trading on Wednesday following the lackluster performance seen in the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
The Dow is likely to regain ground after closing lower in the two previous sessions amid a surge by shares of Salesforce (CRM).
Salesforce is spiking by 11.9 percent in pre-market trading after the enterprise software company reported better than expected fiscal third quarter revenues.
The futures remained positive after payroll processor ADP released a report showing private sector employment in the U.S. increased by slightly less than expected in the month of November.
ADP said private sector employment climbed by 146,000 jobs in November after jumping by a downwardly revised 184,000 jobs in October.
Economists had expected private sector employment to grow by 165,000 jobs compared to the surge of 233,000 jobs originally reported for the previous month.
On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.
Economists currently expect employment to jump by 200,000 jobs in November after inching up by 12,000 jobs in October, while the unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.
Overall trading activity may be somewhat subdued, however, as traders look ahead to remarks by Federal Reserve Chair Jerome Powell later this afternoon.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of November.
The ISM’s services PMI is expected to edge down to 55.5 in November from 56.0 in October, but a reading above 50 would still indicate growth.
The Commerce Department is also due to release its report on new orders for manufactured goods in the month of October. Factory orders are expected to rise by 0.2 percent in October after falling by 0.5 percent in September.
Following the mixed performance seen during Monday’s session, stocks showed a lack of direction over the course of the trading day on Tuesday. Despite the choppy trading, the Nasdaq and the S&P 500 once again reached new record closing highs.
The major averages eventually ended the day mixed. While the Dow dipped 76.47 points or 0.2 percent to 44,705.53, the Nasdaq rose 76.96 points or 0.4 percent to 19,480.91 and the S&P 500 crept up 2.73 points or 0.1 percent to 6,049.88.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index inched up by 0.1 percent, while China’s Shanghai Composite Index fell by 0.4 percent.
The major European markets have also turned mixed. While the U.K.’s FTSE 100 Index is down by 0.3 percent, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.8 percent.
In commodities trading, crude oil futures are inching up $0.13 to $70.07 a barrel after jumping $1.84 to $69.94 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,667.40, down $0.50 compared to the previous session’s close of $2,667.90. On Tuesday, gold rose $9.40.
On the currency front, the U.S. dollar is trading at 150.83 yen compared to the 149.51 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0492 compared to yesterday’s $1.0509.
Business News
Futures Pointing To Initial Strength On Wall Street
2024-12-04 13:48:19
