Wall Street was set to open higher on Wednesday after a report showed private sector job growth was stronger than expected last month, giving investors some optimism about the health of the labor market ahead of Friday’s nonfarm payrolls data.
The ADP’s report on private employment showed an addition of 182,000 jobs in October, compared with the forecast of 180,000 additions.
Other data showed that the U.S. trade deficit narrowed sharply in September to its lowest level in seven months as exports rebounded.
Federal Reserve Chair Janet Yellen is scheduled to testify on the Fed’s actions and plans for bank regulation and supervision at 10:00 a.m. ET.
Her testimony comes as the central bank deliberates on raising interest rates for the first time in nearly a decade. The Fed has said it will move in December if there is sufficient evidence that the economy could sustain higher rates.
“The reality is that things are okay, but not great,” said Ralph Bassett, deputy head of North American equities at Aberdeen Asset Management in Philadelphia. He spoke before the release of Wednesday’s data.
At 8:18 a.m. ET, S&P 500 e-minis ESc1 were up 4.75 points, or 0.23 percent, with 129,644 contracts traded. Nasdaq 100 e-minis NQc1 were up 14.5 points, or 0.31 percent, on volume of 20,487 contracts.
Dow e-minis 1YMc1 were up 46 points, or 0.26 percent, with 18,175 contracts changing hands.
U.S. stocks closed higher on Tuesday, with the Nasdaq 100 .NDX closing at a record high, riding on gains in the technology and energy sectors.
Tesla’s shares (TSLA.O) rose 7.3 percent to $223.49 premarket on Wednesday after the company promised to speed up production of its electric cars.
Groupon (GRPN.O) slumped 27.3 percent to $2.93 after it forecast weak fourth-quarter and 2016 revenue.
Michael Kors (KORS.N) rose 4.8 percent to $41.20 after the handbag maker reported better-than-expected quarterly results.
Other data is expected to show the Institute of Supply Management’s non-manufacturing index slipped to 56.5 in October from 56.9 in the previous month. The data is due at 10:00 a.m.
Fed Vice Chair Stanley Fischer and New York Fed President William Dudley are slated to speak at separate events on Wednesday.
REUTERS
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