US stock futures edged higher on Wednesday after the release of the ADP Nonfarm Employment Change for August. The major indices all posted significant gains in August. The broad-based S&P 500 index has been on an upward trend for seven consecutive months, jumping 2.9% in August. The tech-heavy Nasdaq Composite climbed 4%, while Dow Jones Industrial Average rose 1.2%.
US Market Concerns
According to the ADP National Employment Report earlier on Wednesday, private sector employment increased by 374,000 jobs from July to August. The figures were weaker than the estimated 613,000 forecast. However, it was slightly higher than the 326,000 in July. The service-providing sector recorded the largest number of job increases.
US Treasury inched slightly higher as investors shrugged off the disappointing ADP nonfarm employment change data. The yield on the benchmark 10- year Treasury note rose to 1.319%. The yield on the 30-year Treasury bond advanced to 1.94%.
Oil prices are in the green ahead of the OPEC+ meeting. Sources within the group informed Reuters that OPEC+ has raised its forecast for oil demand next year. US West Texas Intermediate (WTI) crude futures were up at $68.66 per barrel. Brent crude futures rose to $71.81 per barrel. US weekly crude oil inventories will be released later in the day.
Investors have shifted their focus to the nonfarm payrolls data for August due on Friday. Economists are expecting the jobs to increase to have increased by 750,000 last month. The strength in employment data could prompt the Federal Reserve to start tapering its massive bond-buying program earlier than expected.
Dow Jones Movers
JPMorgan was the best performer in the Dow Jones pre-market trade. Climate protesters broke windows at the JPMorgan offices in London earlier on Wednesday. The investment banking company is among the organizations supporting fossil fuels.
Salesforce.com Inc was also up in premarket trading. The software company recently raised its full-year earnings after it acquired Slack.
Nike Inc was also in the green earlier on Wednesday. The sportswear giant recently gave its head office employees a week off, to support their mental health.
Home Depot Inc led the laggards in the Dow Jones index. The home improvement company has been struggling since it reported a slowdown in its store sales.