Dow Futures Advance As Investors Wait For Private Sector Jobs Report

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US stock index futures reported further gains on Wednesday after the stock market closed at its highest level since early March.

How do benchmarks work?

Futures for the Dow Jones Industrial Average
YMM20,
+ 0.57%
YM00,
+ 0.57%

up 109 points, or 0.4%, to 25,810, those of the S&P 500 index
ESM20,
+ 0.43%
ES00,
+ 0.43%

traded 9.10 points, or 0.3%, higher at 3,086.25, while futures on the Nasdaq-100
NQM20,
+ 0.39%
NQ00,
+ 0.39%

gained 22.25 points to reach 9,670, an increase of 0.2%.
Tuesday the Dow
DJIA,
+ 1.05%

up 267.63 points, or 1.1%, to end at 25,742.65, marking its highest closing since March 6, according to Dow Jones Market Data. Meanwhile, the S&P 500 Index
SPX,
+ 0.82%

up 25.09 points, or 0.8%, closing at 3,080.82, its highest final since March 4, and the Nasdaq composite index
COMP,
+ 0.59%

rose 56.33 points, or 0.6%, to end at 9,608.37, the best level since February 20.

What drives the market?

Markets have climbed a virtual wall of anxiety to go higher in recent sessions, increasing social strife and violent protests in big cities, the reluctance between the United States and China and the economic carnage caused by a viral pandemic.

Investors will read the impact of efforts to limit the spread of COVID-19 on Wednesday, with a report on private sector employment expected to show that 8.663 million jobs were lost in May, according to Econoday, versus Automatic Data Processing Inc.
ADP,
+ 1.85%

estimate in April for a loss of 20.236 million. The data, which will be released at 8:15 a.m. EST, precedes the more closely monitored Labor Department report to be released on Friday.
Markets previously ignored catastrophic economic news and a wave of protests in American cities over the death of George Floyd in Minneapolis last week – an unarmed black man who died under the knee of a white cop. Protests against social injustice in America have resulted in curfews imposed in a number of cities, including New York.
“Social unrest continues across the United States, resulting in New York, known as” The City That Never Sleeps “, requiring 8 p.m. curfew today, 22 minutes before sunset, “wrote BTIG analysts Julian Emanuel and Michael Chu in a research note on Tuesday.
The current wave of civil unrest unfolding in America has made comparisons to demonstrations of social justice in 1968, but BTIG analysts note that the weakened economy due to the fallout from the viral epidemic aggravates the situation. “GDP growth in 1968 was 4.8%, 2020 GDP is forecast at -5.8%,” analysts wrote.
Hope for success in reopening businesses has been credited with pushing stocks higher, but analysts say an unprecedented dose of Federal Reserve stimulus has also provided a floor for assets considered risky . Weekly data showed that the Fed’s balance sheet reached $ 7.1 trillion last Wednesday, up from $ 7.04 trillion in the previous period. Meanwhile, the US government has injected billions of dollars more into small businesses and workers to help alleviate the difficulties of store closings.
In addition to labor market data, investors will be monitoring a service sector report from the Institute for Supply Management at 10:00 am as well as a report on factory orders at the same time.
Read: In the midst of illness, riots and rising American-Chinese tensions, the stock market keeps it cool

Which titles are targeted?
  • Zoom Video Communications Inc.
    ZM,
    + 1.92%

    recorded record sales and profits, and more expectations during the COVID-19 pandemic.

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