U.S. stock index futures were slightly higher early Wednesday as more data suggesting slower economic growth supported the notion that the Federal Reserve may not raise interest rates further.
How are stock-index futures trading
-
S&P 500 futures
ES00,
+0.08%
gained 2.3% points, or 0.1%, to 4508 -
Dow Jones Industrial Average futures
YM00,
+0.09%
rose 32 points, or 0.1%, to 34,917 -
Nasdaq 100 futures
NQ00,
+0.01%
advanced 7.8 points, or 0.1%, to 15,429
On Tuesday, the Dow Jones Industrial Average
DJIA
rose 293 points, or 0.85%, to 34853, the S&P 500
SPX
increased 64 points, or 1.45%, to 4498, and the Nasdaq Composite
COMP
gained 239 points, or 1.74%, to 13944.
What’s driving markets
Investors are focusing on the private sector payroll data released on Wednesday, hoping evidence of a cooling labor market could support an eventual pivot to monetary easing by the Federal Reserve.
Private sector payrolls rose by 177,000 in August, down from a revised 371,000 in the prior month, according to the payroll services firm ADP on Wednesday. Economists polled by The Wall Street Journal had forecast a gain of 200,000 private sector jobs in August.
Meanwhile, the U.S. economy grew at a somewhat slower 2.1% annual pace in the second quarter, revised figures show. Gross domestic product was marked down from an initial 2.4%.
The S&P 500 index closed the previous session at a three-week peak after Treasury yields slid sharply in response to signs of a softening labor market and waning consumer confidence.
The equities benchmark is up 2.2% over the past three trading days — moving back above its 50-day moving average — as the 10-year Treasury have shed nearly 15 basis points over that period. Equities have tended to rise of late when implied borrowing costs fall.
“Yesterday was a typical ‘bad news is good news’ day,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Risk sentiment in the U.S. and across the globe was boosted by an unexpected dip in U.S. job openings to below 9 million jobs in July, the lowest level in more than two years, and an unexpected fall in consumer confidence in August.”
“The weak data pushed the Federal Reserve hawks to the sidelines, and bolstered the expectation of a pause in September, and tilted the probabilities in favor of a no hike in November, as well,” she added.
The main corporate focus on Wednesday is likely to be the results of Salesforce
CRM,
which are due after the closing bell. PC maker HP
HPQ,
offered a cautious outlook late on Tuesday.
Companies in focus
-
HP Inc.
HPQ,
-10.49%
skidded 8.4% in premarket trade following an earnings report highlighted by a third straight revenue miss and warnings of a challenging economy for the PC and printer maker. HP Chief Executive Enrique Lores warned PC pricing has not “recovered as quickly,” but he said that the availability of AI products in late 2024 should “refresh” consumer and business sales. -
Rivian Automotive Inc.
RIVN,
-0.37%
shares edged up 0.3% in premarket trade after the company said in a filing late Tuesday that its board has approved an increase in its chief executive RJ Scaringe’s annual base salary to $1 million, from $650,000, effective last Friday. -
Box Inc.
BOX,
-9.22%
shares fell 9.2% in premarket trading after the company on Tuesday reported quarterly results that barely topped analyst revenue and earnings estimates and offered weak guidance.
