MARKET SNAPSHOT: Dow Futures Jump Almost 100 Points As U.S. Stocks Look Set For Rebound
02 September 2015 - 6:54PM
Dow Jones News
By Sara Sjolin, MarketWatch
ADP data, Fed's Beige Book on tap
U.S. 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 rallied 96 points,
or 0.6%, to 16,183, while those for the S&P 500 index picked up
11.85 points, or 0.6%, to 1,927.75. Futures for the Nasdaq 100
index climbed 27.50 points, or 0.7%, to 4,186.
The indicated advances come after all three averages closed with
sharp losses on Tuesday
(http://www.marketwatch.com/storyno-meta-for-guid) 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
(http://www.marketwatch.com/story/china-to-close-stock-market-to-honor-world-war-ii-anniversary-2015-09-01)
for the World War Two Victory Day parade.
The Shanghai Composite Index ended 0.2% lower
(http://www.marketwatch.com/storyno-meta-for-guid) 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
(http://www.marketwatch.com/story/case-for-september-rate-hike-was-pretty-strong-before-china-devaluation-fischer-says-2015-08-28)
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
(http://www.marketwatch.com/story/where-every-fed-member-stands-on-raising-interest-rates-2015-08-28).
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) said that TRC Capital Corp. has made an unsolicited
"mini-tender" offer
(http://www.marketwatch.com/story/att-recommends-shareholders-reject-trc-capitals-3-million-share-mini-tender-offer-2015-09-01)
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) could also be active after the tech giant late
Tuesday said its overhauling its flagship line of computer chips
(http://www.wsj.com/articles/intel-overhauls-chips-in-bid-to-revive-pc-sales-1441155601).
McDonald's Corp.(MCD) was also in the spotlight after the
fast-food chain said it plans to offer all-day breakfast at its
U.S. restaurants
(http://www.marketwatch.com/story/mcdonalds-set-to-offer-all-day-breakfast-2015-09-01-16103533)
from Oct. 6. The move to all-day breakfast has been being tested in
some franchises since March.
Other markets: European stock markets started the day higher,
but pared gains in mid-morning action. Oil futures shaved off 2.3%
(http://www.marketwatch.com/storyno-meta-for-guid), building on a
7.7% loss from Tuesday that reversed a three-session climb. Gold
inched higher, while the ICE dollar index rose 0.2% to 95.628.
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(END) Dow Jones Newswires
September 02, 2015 04:39 ET (08:39 GMT)
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