Markets

Stock Futures Add to Early Gains on Below-Consensus Private Payrolls

U.S. stock futures were building on earlier gains as a below-consensus gain in private payrolls dimmed expectations for the Federal Reserve to hike rates in December. Automated Data Processing reported 182,000 new private payrolls were added in October, slightly less than estimates of an increase of 185,000. In addition, September's 200,000 gain was revised lower by 10,000.

Futures were moderately higher into the payroll data, buoyed by upbeat services sector data from China, and indications that Europe and Japan are considering additional stimulus measures to bolster their economies. In addition to dovish comments from members of the European Central Bank last night, Japanese Prime Minister Shinzo Abe said that his government was considering policies that would boost investment and help the country realize its GDP goal.

In addition to private payroll data, Wall Street also digested a decline in the U.S. trade deficit to $40.8 billion from a revised $48.02 billion deficit in August. This is slightly better than estimates for a deficit of $41.1 billion.

Wednesday's remaining data includes the final PMI services sector index for October (expected 54.8), and the ISM non-manufacturing index for October (expected 56.7).

Fed-speak will also occupy Wall Street today with Philadelphia Fed President Patrick Harker, New York President William Dudley, Vice Chairman Stanley Fischer, and Chair Janet Yellen all scheduled to speak today.

-Dow Jones Industrial up 0.26%

-S&P 500 futures up 021%

-Nasdaq 100 futures up 0.30%

SENTIMENT

Nikkei up 1.30%

Hang Seng up 2.15%

Shanghai Composite up 4.29%

FTSE-100 up 0.98%

DAX-30 down 0.05%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: Higher

(+/-) Chip stocks: Mixed

(+/-) Software stocks: Higher

(+/-) Hardware stocks: Higher

(+/-) Internet stocks: Higher

(+/-) Drug stocks: Lower

(+/-) Financial stocks: Higher

(+/-) Retail stocks: Flat

(+/-) Industrial stocks: Mixed

(+/-) Airlines: Higher

(+/-) Autos: Higher

UPSIDE MOVERS:

(+) WBMD (+10.20%) Reported better-than-expected Q3 results

(+) TSLA (+7.82%) Reported a wider Q3 loss but forecast a rise in deliveries for Q4

(+) OCLR (+5.70%) Beat Q3 EPS estimates

DOWNSIDE MOVERS:

(-) GRPN (-29.78%) Below consensus revenue and light earnings guidance overshadowed a bottom-line beat

(-) X (-10.51%) Reported disappointing quarterly results

(-) AVP (-10.44%) Missed earnings and revenue estimates

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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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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