Last Updated: 4:00 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 2.04%, 1.18%, and 0.25%, respectively. On Wednesday, Automatic Data Processing (NASDAQ:ADP) released its Nonfarm Employment Change report, which came in worse than expected. In May, nonfarm employment jumped by 152,000, whereas expectations were for an increase of 173,000. This fueled investor optimism for rate cuts, which is what’s causing today’s rally.
In addition, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 53.8, higher than the expected 51 and above last month’s reading of 49.4.
First Published: 4:59 AM EST
U.S. futures traded slightly higher on Wednesday morning, buoyed by strong corporate earnings. Also, investors are looking ahead to private payroll data, due today. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.26%, 0.13%, and 0.15%, respectively, at 4:25 a.m. EST, June 5.
On Tuesday, investors were able to gain insight into the health of the labor market, which is a major data point in the Federal Reserve’s monetary policy decision. The job opening and labor turnover data for April, released yesterday, suggested a potential cooling of the labor market.
Investors will be able to assess the labor situation further with the Nonfarm Employment Change report scheduled for release by Automatic Data Processing (ADP) today. Moreover, the Services Purchasing Managers’ Index (PMI) data for May will be made public today.
On the earnings front, Dollar Tree (DLTR), ChargePoint Holdings (CHPT), Lululemon (LULU), and DocuSign (DOCU) will announce results today.
In major after-hours action, Hewlett Packard Enterprise (HPE) stock jumped 15.3% on better-than-expected Q2 results. Further, CrowdStrike (CRWD) gained about 7% after the release of strong Q1 results. In addition, shares of Stitch Fix (SFIX) surged over 24% yesterday owing to the company’s stronger-than-expected fiscal third-quarter results.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.36%. At the same time, WTI crude oil futures trended higher, hovering near $73.35 per barrel as of the last check.
Elsewhere, European markets opened higher today as investors eagerly awaited the European Central Bank’s interest rate decision.
Asia Pacific Markets Traded Lower on Wednesday
Asia-Pacific indices closed in the red today. Investors assessed the private survey data from China, which indicated that service activity in May reached its highest level in the past 10 months.
Hong Kong’s Hang Seng index was down 0.15%. At the same time, China’s Shanghai Composite and Shenzhen Component indices traded lower by 0.83% and 0.8%, respectively. Further, Japan’s Nikkei and Topix indices finished lower by 0.89% and 1.41%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
