Futures Hold Gains After ADP Jobs Report
U.S stock index futuresedged higher Wednesday following a better-than-expected private-sector employment report, which trumped weak global service sector reports from China and the euro zone.
Private sector employment rose more than expected, with employers adding 162,000 jobs in September. Economists surveyed by Reuters estimated a gain of 143,000.
"As pleasant as it is to see an increase in private sector jobs, Wall Street traders are seasoned enough to know the data rarely matches the forthcoming Jobs report on Friday," said Todd Schoenberger, managing principal at The BlackBay Group. "Regardless, traders will be more forgiving of a disappointing number on Friday due to the recent actions by Ben Bernanke and the Fed."
Investors will be looking ahead to the all-important September government jobs data due at the end of the week. Economists expect the nonfarm payroll number for September to be around 118,000.
Other economic reports out on Wednesday include the Institute for Supply Management’s non-manufacturing index at 10 a.m., which tracks monthly changes in the service sector economy.
Meanwhile, data from China showed the country’s Purchasing Managers’ Index (PMI) for the services sector fellin September, suggesting a slowing sector growth.
And the euro zone composite PMI data added to concerns over the region, falling to 46.1 in September. A reading below 50 indicates a contraction.
Best Buy jumped after Reuters reported the consumer-electronics retailer's founder Richard Schulze and at least four other private-equity firms are examining the company's books, which could lead to a $11 billion buyout.
Among earnings, Family Dollar rallied after the discount chain posted a higher quarterly profit.
Meanwhile, Monsanto slid after the agribusiness company posted a loss.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: ISM non-mfg index, oil inventories, H-P analysts mtg; Earnings from Marriott
THURSDAY: Chain-store sales, Challenger job-cut report, jobless claims, factory orders, FOMC minutes
FRIDAY: Non-farm payrolls, consumer credit
More From CNBC.com: