## S&P 500 Futures Tick Higher as US ADP Jobs Report Looms S&P 500 futures edged higher on Wednesday, as investors awaited the release of the ADP National Employment Report for August, which is expected to provide insights into the strength of the US labor market.
ADP Jobs Report Preview
The ADP National Employment Report is a closely watched economic indicator that measures the monthly change in private sector payrolls. It is released two days ahead of the more comprehensive non-farm payrolls report from the Bureau of Labor Statistics. Economists expect the ADP report to show that private employers added around 200,000 jobs in August, slightly lower than the 218,000 jobs added in July. A stronger-than-expected number could boost market sentiment, while a weaker number could raise concerns about the pace of economic recovery.
Market Sentiment
S&P 500 futures were trading slightly higher on Wednesday, indicating a positive start to the trading day. The uptick in futures followed gains in global markets overnight, as investors reacted positively to upbeat economic data from China and Europe.
Technical Analysis
The S&P 500 index closed at 4,507.23 on Tuesday, just below its all-time high of 4,512.84. Technically, the index is in a bullish trend, with support at 4,450 and resistance at 4,520. A break above resistance could trigger further upside momentum, while a break below support could indicate a potential pullback.
Other Factors to Watch
In addition to the ADP jobs report, investors will also be monitoring: * The release of initial jobless claims on Thursday * Speeches by Federal Reserve officials, including Jerome Powell on Thursday and Lael Brainard on Friday * Developments in the ongoing US-China trade negotiations
Bar Chart
The following bar chart shows the daily price action of S&P 500 futures over the past five trading days: [Image of S&P 500 futures bar chart]
Conclusion
S&P 500 futures are ticking higher on Wednesday, driven by a positive market sentiment and anticipation of the ADP jobs report. Investors should monitor the data release and other upcoming economic events for further direction on the market’s trajectory.
U.S. ADP jobs report looms, sends S&P futures ticking higher
U.S. stock index futures edged higher on Wednesday ahead of the ADP National Employment Report due later in the day, which is expected to shed light on the labor market ahead of Friday’s closely watched nonfarm payrolls report.
ADP National Employment Report
The ADP National Employment Report, scheduled for release at 8:15 AM ET, is a closely watched indicator of the U.S. labor market. It provides an estimate of private sector employment change in the previous month. Economists expect the report to show a gain of 200,000 jobs in January, down from the 235,000 jobs added in December.
S&P futures
Against this backdrop, futures for the S&P 500 index gained 0.2% before the opening bell. Dow Jones Industrial Average futures rose 0.1%, while Nasdaq 100 futures advanced 0.3%.
Other market news
*
Earnings:
Several companies are scheduled to report quarterly results today, including PayPal, Airbnb, and Chipotle. *
Economic data:
In addition to the ADP report, the U.S. will also release data on factory orders for December later in the day. *
Geopolitics:
Tensions remain high between the U.S. and China after the U.S. shot down a suspected Chinese spy balloon over the weekend.
Technical analysis
The S&P 500 index closed at 4,136.48 on Tuesday, slightly above its 200-day moving average. The index has been trading in a relatively narrow range over the past week, with support at around 4,080 and resistance at 4,180.
Expectations
Analysts expect the ADP report to provide insights into the strength of the labor market and its implications for the Federal Reserve’s interest rate policy. A stronger-than-expected report could support the case for the Fed to continue raising interest rates to combat inflation. Conversely, a weaker report could raise concerns about the economy’s health and potentially lead to a more dovish stance from the Fed.
