Dow futures jump almost 100 points as U.S. stocks look set for rebound
New York (Sept 2) US stock futures pointed to an upbeat open on Wall Street on Wednesday, with investors finding relief in calmer markets in Asia ahead of a Chinese holiday.
Later in the day, key labor-market data and the Federal Reserve’s Beige Book will also be closely watched for any clues on the timing of the first rate increase.
Futures for the Dow Jones Industrial Average YMU5, +0.64% rallied 96 points, or 0.6%, to 16,183, while those for the S&P 500 index ESU5, +0.59% picked up 11.85 points, or 0.6%, to 1,927.75. Futures for the Nasdaq 100 index NQU5, +0.61% climbed 27.50 points, or 0.7%, to 4,186.
The indicated advances come after all three averages closed with sharp losses on Tuesday on the back of fears China’s economy is slowing faster than anticipated. Tuesday marked the third-biggest daily drop of the year for the S&P 500 and the Dow, while for the Nasdaq, it was the third worst by-percentage decline.
Connor Campbell, financial analyst at Spreadex, said in a note that even if the markets are looking better on Wednesday, the concerns over China are “still looming above the markets like the sword of Damocles, meaning it is far too early to tell what the state of trading will be by the end of the day.”
“The saving grace could be the two-day Chinese holiday that begins on Thursday, which in theory should provide a moment of respite for volatility-weary investors and therefore a chance to avoid the usual last minute panic in the minutes before the closing bell,” he added.
China’s stock markets are closed Thursday and Friday for the World War Two Victory Day parade.
The Shanghai Composite Index SHCOMP, -0.20% ended 0.2% lower on Wednesday, for a 2.2% weekly slide.
U.S. data: Investors were also closely watching data from the U.S., trying to gauge whether they may change the Fed’s stance on when to hike interest rates.
Fed vice chairman Stanley Fischer said on Friday that any data releases between then and the Sept. 16-17 meeting could influence the rate decision.
“If the decision is close, recent data may tip it one way or another. With that in mind, Friday’s jobs report will be key, as will today’s data,” said Craig Erlam, senior market analyst, in a note.
Read: Where every Fed member stands on raising interest rates.
The ADP employment report for August comes out at 8:15 a.m. Eastern Time, followed by second-quarter productivity and unit-labor-costs data at 8:30 a.m. Economists polled by MarketWatch expect productivity to have risen 3.2%, while labor costs are forecast to have slipped 1.4%.
Factory orders for July are due at 10 a.m., while the Fed’s Beige Book is slated for release at 2 p.m.
There are no Fed speakers scheduled for Wednesday.
Movers and shakers: After Tuesday’s closing bell, AT&T Inc. T, -2.65% said that TRC Capital Corp. has made an unsolicited “mini-tender” offer to buy up to 3 million of the telecom company’s shares. AT&T recommended that shareholders should reject the offer. Shares were up 1% in thin premarket trade.
Intel Corp. INTC, -2.52% could also be active after the tech giant late Tuesday said its overhauling its flagship line of computer chips.
McDonald’s Corp. MCD, -1.63% was also in the spotlight after the fast-food chain said it plans to offer all-day breakfast at its U.S. restaurants from Oct. 6. The move to all-day breakfast has been being tested in some franchises since March.
Other markets: European stock markets SXXP, -0.07% started the day higher, but pared gains in mid-morning action. Oil futures CLV5, -2.14% shaved off 2.3%, building on a 7.7% loss from Tuesday that reversed a three-session climb. Gold inched higher, while the ICE dollar index DXY, +0.33% rose 0.2% to 95.628.
Source: MarketWatch
