U.S. stock futures trimmed gains Wednesday after the release of much weaker-than-expected private payrolls data.
Dow Jones Industrial Average futures were up 140 points, or 0.5%. Earlier in the day, Dow futures were up more than 200 points. S&P 500 futures traded 0.4% higher and Nasdaq 100 advanced 0.1%.
ADP reported Wednesday that private payrolls in the U.S. increased by just 167,000 in July. That’s well below a Dow Jones estimate of 1 million and represents a tumble from the 4.314 million added in June.
The final read on July Services PMI will be released at 9:45 am ET. Economists polled by Dow Jones are expecting a read of 49.6, the same as June. Finally, the ISM nonmanufacturing survey is set to release at 10:00 ET. Economists estimate a red of 55, according to Dow Jones, down from June’s read of 57.1.
Traders also grappled with continuing talks in Washington over a new coronavirus stimulus package.
The White House and Democratic congressional leaders have reported some progress in the negotiations, but they remain apart on some issues.
“I think the expectation for the market is that we are going to get that stimulus,” Ally Invest’s Lindsay Bell said on CNBC’s “Closing Bell” on Tuesday. “There may be a few weeks of waiting while these folks don’t get their extra benefits or there may be uncertainty around evictions and that uncertainty could lead to some volatility.”
Better-than-expected earnings from Disney helped sentiment on Wall Street. The theme park and media giant earned a profit of 8 cents per share, while analysts expected a loss of 64 cents per share. Disney said it now has 100 million paid subscribers across its streaming services, which include Disney+, Hulu and ESPN+.
Disney shares jumped by 6% in premarket trading.
On Tuesday, all three major averages notched gains. the Dow Jones Industrial Average climbed more than 150 points, for its third straight day of gains. The S&P 500 rose about 0.35%.
The Nasdaq Composite rose 0.35%, closing at a record high for its fifth day in a row.
The Wall Street Journal said Tuesday U.S. trade representative Robert Lighthizer and Chinese Vice Premier Liu will meet in mid-August to discuss the Phase One trade deal between the U.S. and China.
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