U.S. stock futures add to gains after ADP report; Dow up 0.3%

Forexpros - U.S. stock futures pointed to a modestly higher open on Wednesday, rebounding from the previous day's sharp decline as better-than-expected data on non farm employment and a number of strong earnings reports helped lift sentiment.

Dow Jones Industrial Average futures pointed to a gain of 0.3%, the S&P 500 futures edged 0.35% higher, while the Nasdaq 100 futures added 0.4%.

Stock futures added to gains after payroll processing firm ADP said that U.S. non-farm private employment rose by 114K in July, outstripping expectations for a gain of 100K.

In earnings news, credit card provider MasterCard saw shares jump 3.2% after saying second quarter net income rose 33% to USD608 million. Revenue increased to USD1.7 billion, beating expectations for revenue of USD1.3 billion.

Broadcasting giant CBS Corporation saw shares climb 1.75% after it said second quarter profit more than doubled from a year earlier, as strong gains in licensing and advertising revenues boosted results.

Shares in rival Comcast added 2.5% after reporting a 15% increase in second quarter profit. Revenue in the quarter rose to USD14.3 billion, above expectations for revenue of USD13.65 billion.

Rental car company Hertz saw shares surge 5.1% after it swung to a second quarter profit of USD55 million from a loss of USD25.1 million a year earlier.

On the downside, navigation device manufacturer Garmin saw shares tumble 7.5% after it reported a 19% drop in second quarter earnings, as sales volume in the North American personal navigation device market declined.

In deal news, insurance claims processor Emdeon saw shares rally 13.5% after it agreed to be acquired by private equity firm Blackstone for nearly USD3 billion.

Across the Atlantic, European stock markets were lower as concerns over sovereign debt contagion and downbeat results from Societe Generale weighed.

The EURO STOXX 50 fell 0.3%, France's CAC 40 declined 0.35%, Germany's DAX sank 0.95%, while Britain's FTSE 100 dropped 1%.

During the Asian trading session, Japan's Nikkei 225 Index plunged 2.1%, while Hong Kong's Hang Seng Index lost 1.9% as mounting concerns over the U.S. economic outlook prompted investors to shun riskier assets.

Later in the day, the U.S. Institute of Supply Management was to publish a report on service sector growth, while the country was to release government data on factory orders and crude oil inventories.

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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.

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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