(RTTNews) – After ending yesterday’s lackluster session mostly higher, stocks may see further upside in early trading on Wednesday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.3 percent.
Early buying interest may be generated in reaction to a report from payroll processor ADP showing private sector job growth in the U.S. slowed by more than expected in the month of May.
ADP said private sector employment climbed by 152,000 jobs in May after jumping by a downwardly revised 188,000 jobs in April.
Economists had expected private sector employment to increase by 173,000 jobs compared to the addition of 192,000 jobs originally reported for the previous month.
While the bigger than expected slowdown in job growth may add to recent concerns about the economy, the data is also likely to add to optimism about the outlook for interest rates.
The markets may also continue to take their cues from Nvidia (NVDA), with the AI darling poised to reach a new record intraday high.
Overall trading activity may remain somewhat subdued, however, as traders look ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.
Economists currently expect the report to show employment jumped by 185,000 jobs in May after climbing by 175,000 jobs in April, while the unemployment rate is expected to hold at 3.9 percent.
Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of May.
The ISM’s services PMI is expected to rise to 50.5 in May from 49.4 in April, with a reading above 50 indicating growth.
Stocks fluctuated over the course of the trading session on Tuesday before eventually ending the day modestly higher. The major averages all finished the day in positive territory following the mixed performance seen on Monday.
The Dow climbed 140.26 points or 0.4 percent to 38,711.29, the Nasdaq rose 28.38 points or 0.2 percent to 16,857.05 and the S&P 500 edged up 7.94 points or 0.2 percent to 5,291.34.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slumped by 0.9 percent and China’s Shanghai Composite Index slid by 0.8 percent, while South Korea’s Kospi jumped by 1.0 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has risen by 0.4 percent, the French CAC 40 Index and the German DAX Index are both up by 1.0 percent.
In commodities trading, crude oil futures are rising $0.39 to $73.64 a barrel after slumping $0.97 to $73.25 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,355.40, up $8 compared to the previous session’s close of $2,347.40. On Tuesday, gold tumbled $21.90.
On the currency front, the U.S. dollar is trading at 156.10 yen compared to the 154.88 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0873 compared to yesterday’s $1.0879.
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