Stock futures point higher ahead of data as oil rises
Stock index futures pointed to a higher open on Wednesday ahead of a private sector employment report that may give investors a peek into June payroll data, while oil rebounded from its earlier losses.
Oil and commodity prices, which put pressure on stocks in the last session as they fell in tandem with a stronger U.S. dollar, headed higher as the dollar edged down and crude futures climbed 2 percent.
Automatic Data Processing (ADP) releases its June employment report at 8.15 a.m.. Economists in a Reuters survey expect ADP's data to show 393,000 jobs were lost in June, down from a May job loss figure of 532,000.
The dollar's backed up a bit and oil is back above $71 ... so that is helping the futures story now, said Art Hogan, chief market analyst at Jefferies & Co in New York.
Other data to be released on Wednesday include May pending home sales and June manufacturing figures. Between now and 10 a.m. there are going to be plenty of things to either give us pause or move us higher, Hogan said. It's going to be one of those days where any piece of incrementally good or bad news could move things pretty violently.
U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday.
S&P 500 futures rose 5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 56 points, and Nasdaq 100 futures added 7.75 points.
At 10.00 a.m., the Institute for Supply Management releases its June manufacturing index, seen as early sign into the health of the economy. Economists in a Reuters survey expect a reading of 44.5 compared with 42.8 in May.
The National Association of Realtors releases pending home sales for May at 10.00 a.m.. Economists in a Reuters survey expect a flat reading.
Investors will also be watching the release of U.S. automakers' June auto sales for insight into consumer resilience. Economists in a Reuters survey expect annualized sales of 3.33 million cars and 4.00 million trucks. In May, car sales stood at 3.35 million, and truck sales were 4.03 million.
Also on tap is the Challenger report on planned layoffs at U.S. firms in June.
In earnings news, food maker General Mills Inc
Constellation Brands Inc
Shares of Pfizer Inc
dropped 1.5 percent to $14.77 after the bell on Tuesday after the company said it was scrapping a late stage trial of its drug Sutent for treatment of a form of colorectal cancer.
Shares of AMAG Pharmaceuticals Inc
The U.S. Commerce Department releases May construction spending at 10 a.m.. Economists in a Reuters survey forecast a decline of 0.5 percent compared with a 0.8 percent rise the prior month.
U.S. stocks fell on Tuesday as an unexpected drop in consumer confidence cooled recent optimism about an economic recovery, but Wall Street still closed out its best quarter in a decade.
(Reporting by Edward Krudy; Editing by Padraic Cassidy)
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