MW: U.S. stocks set for solid gains, led by upbeat Asia
U.S. stock futures rallied early Wednesday, getting a boost from upbeat trading in Asia and Europe, as investors wait for Federal Reserve speakers and jobs-number clues to the timing of a rate hike.
Futures for the Dow Jones Industrial Average YMZ5, +1.08% jumped 173 points, or 1.1%, to 16,122, while those for the S&P 500 index ESZ5, +1.12% added 21 points, or 1.1%, to 1,895.50. Futures for the Nasdaq 100 index NQZ5, +1.21% climbed 49.50 points, or 1.2%, to 4,124.25.
The benchmarks got a lift from a positive sentiment in Asia, where almost all markets closed firmly higher after an optimistic data release on Chinese consumer sentiment. The upbeat trading mood also spilled over into Europe, where all major benchmarks scored gains of more than 2%.
But despite those gains, global stock markets are heading for sharp declines for the third quarter, which was marred by concerns about slowing economic growth in China. The quarter ends Wednesday.
The U.S. stock averages are also on track for quarterly losses, with the S&P 500 index SPX, +0.12% Dow average DJIA, +0.30% and Nasdaq Composite Index COMP, -0.59% all eyeing losses of around 9% as of Tuesday’s close. U.S. stocks ended mixed on Tuesday, as the S&P snapped a five-day losing streak.
Fed speakers: Among the highlights, New York Fed President William Dudley will deliver remarks on market liquidity at a SIFMA event in New York at 8:30 a.m. Eastern Time.
Fed Chairwoman Janet Yellen is slated to give welcoming remarks at the St. Louis Fed conference on community banking at 3 p.m. Eastern. At the same conference, Fed governor Lael Brainard will give a speech on community banks, small business credit and online lending at 8:15 p.m. Eastern.
“We know that they are likely to stay on message about rate hikes this year, essentially denying that the September FOMC statement ever happened,” said Paul Donovan, global economist at UBS, in a note.
The Federal Open Market Committee decided to keep rates at a record low at its latest meeting, citing global market volatility and a slowdown in emerging markets.
“Data on both sides of the Atlantic continues to signal that the real economy is rather indifferent to financial markets — although confidence data should always be treated with considerable caution.” Donovan added.
Data: At 8:15 a.m. Eastern, the ADP employment report is due, forecast to show that 190,000 private-sector jobs were added to the U.S. economy in September, according to FactSet estimates.
The ADP report is by some seen as a precursor for the closely watched nonfarm-payrolls report due on Friday, although the two data sets sometimes vary substantially.
The Chicago purchasing managers index for September is due at 9:45 a.m.
Movers: Shares of Tesla Motors Inc. TSLA, -0.72% gained 2.1% in premarket trade after the electric-car maker late Tuesday unveiled its Model X SUV.
Shares of Costco Wholesale Corp. COST, +0.12% inched 0.2% higher in thin premarket trade after the retailer late Tuesday reported a 10% rise in profit in its fourth fiscal quarter.
Other markets: Metals prices were mainly higher, although gold GCV5, -0.38% dropped 0.4%.
Crude oil CLX5, -0.42% slipped slightly, but stayed above $45 a barrel.
The dollar traded mixed against other major currencies, but the ICE dollar index DXY, +0.25% managed to squeeze out a 0.2% gain.
