US stocks are set to open the markets lower on Wednesday ahead of the ADP Nonfarm Payroll data. Dow Jones futures edged 0.36% lower after the index closed higher on Tuesday after strong consumer confidence data. Nasdaq 100 futures as well as S&P 500 futures slipped.
US Economic Sentiment
The Dow Jones index was up on Tuesday after better-than-expected US Consumer Confidence. The US CB Consumer Confidence index improved in June. It came in at 127.3 surpassing the estimate forecast of 119.0.
Consumer confidence in June was at its highest level since the onset of the corona virus pandemic. It was up from last month’s 117.2 figure. Many consumers said they expect business conditions to improve.
The consumer confidence index is the Fed’s favorite number. Investors are looking ahead of the labor market data to gauge whether the Federal Reserve would consider tapering its monetary policies earlier than expected.
The ADP Private payrolls data for June is yet to be released later in the day. Analysts expect the number of private payrolls in June to fall to 683,000 from the previous 978,000 last month. The Dow Jones index will react to the data by the labor market.
Homebuilder stocks were up on Tuesday. According to the National Home Price Index, home prices surged more than 14% in April compared to 2020. Some of the major cities in the United States recorded their highest annual gains.
US Treasury yields dropped on Wednesday. The 10-year treasury note slipped to 1.465%. the 30-year Treasury bond dipped top 2.087%. Brent crude futures were relatively flat ahead of the OPEC meeting to discuss a potential increase in supply.
The United States is still moving forward with its bipartisan infrastructure bill. This will be a big boost to the US economy. A group of bipartisan senators agreed to the $1 trillion infrastructure deal. The funds will be used to improve roads, airports, transit networks and bridges. The deal will push the total spending stimulus for this year up to $3.8 trillion.
Dow Jones Pre-Market Movers
Chevron Corp was the best performer in the Dow Jones index. The oil industry company gained in pre-market trading. The company’s stocks have been on a losing streak for two consecutive days. Other top performers in the index include Boeing Co, Procter & Gamble Co, and Walmart.
Among the laggards in the pre-market trade include Goldman Sachs, Johnson & Johnson, and Nike Inc.