Wall Street Sees Higher Open on Soaring Oil Prices; Private Payrolls Grow Higher-Than-Expected


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U.S. stocks were pointing to a moderately higher open on Wednesday, led by gains in the energy sector, amid growing optimism that major oil producers were closing in on a deal to curb production at a meeting in Vienna, and as the U.S. economy saw a major jump in job creation.

Oil prices surged with global benchmark Brent Crude up 7.85% recently and U.S. benchmark West Texas Intermediate up 7.30% after some positive signals from delegates of Saudi Arabia, Iraq and Iran that an agreement would be reached.

Data released at 8:15 a.m. showed the ADP employment report coming in at a strong 216,000, well above the 160,000 increase seen by forecasters and higher than the 147,000 in October, according to data compiled by Econoday.

At 8:30 a.m., data showed personal income rose 0.6% in October, above the 0.4% estimate and compared to the 0.4% growth seen in the prior month. Consumer spending rose 0.3% versus the 0.5% consensus and prior level of 0.7%.

At 9:45 a.m., the Chicago PMI index is expected to gain 1.4 points to 52.0 in November.

At 10:00 a.m., pending home sales index is expected to rise 0.8% in October, versus the sharp 1.5% increase seen in September.

Federal Reserve Presidents Robert Kaplan and Loretta Mester and Governor Jerome Powell are all scheduled to give speeches.

In equities, shares of Arrowhead Research ( ARWR ) were 59.5% lower pre-bell after the company said late Tuesday that it will discontinue the development of certain clinical-stage drug candidates and will rebalance its resources to support the development of RNAi-based therapeutics.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial up 0.21%

-S&P 500 futures up 0.25%

-Nasdaq 100 futures up 0.09%

-Nasdaq 100 pre-market indicator up 0.14%

GLOBAL SENTIMENT

Nikkei up 0.01%

Hang Seng up 0.23%

Shanghai Composite down 1.00%

FTSE-100 up 0.86%

DAX-30 up 0.19%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(+) Chip stocks: unchanged to higher

(+) Software stocks: unchanged to higher

(+) Hardware stocks: unchanged to higher

(+-) Internet stocks: mixed

(+) Oil stocks: higher

(+) Biotech stocks: unchanged to higher

(+/-) Drug stocks: mixed

(+) Financial stocks: higher

(+/-) Retail stocks: mixed

(+) Industrial stocks: unchanged to higher

(-) Airlines: lower

(+) Autos: higher

UPSIDE MOVERS

(+) SCON (+51.6%) Selected as prime recipient of $4.5 million program from Department of Energy

(+) RIG (+3.1%) Prices $625 million notes offering

(+) SPLK (+6.8%) Tops Q3 estimates

DOWNSIDE MOVERS

(-) VALE (-7.9%) Rethinks pace of asset sale plan to chip away debt load

(-) CMRE (-19.4%) Prices common stock offering at $6 per share

(-) AEO (-7.8%) Q4 earnings outlook below Street estimate

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks


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