Wall Street Poised To Open Strong

Initial signs from the U.S. Futures Index point to a strong opening for Wall Street, extending its gains on Tuesday.

ADP’s Employment Report, ISM’s Non-Manufacturing Index, as well as Markit Economics’ Purchasing Manager’s Index for May are the major economic data announcements on Wednesday. There are a few Fed speeches scheduled for the day.

Asian shares closed mixed, while European shares are trading positive.

As of 7.35 am ET, the Dow futures were spiking 138.00 points, the S&P 500 futures were up 14.25 points and the Nasdaq 100 futures were adding 44.75 points.
The U.S. major averages closed higher on Tuesday. The Dow soared 512.40 points or 2.1 percent to 25,332.18, the Nasdaq spiked 194.10 points or 2.7 percent to 7,527.12 and the S&P 500 surged 58.82 points or 2.1 percent to 2,803.27.

On the economic front, Automatic Data Processing or ADP’s Employment Report for May will be published at 8.15 am ET. The consensus is for 175 thousand, while it was up 275 thousand in the prior month.

Federal Reserve Board of Governors Vice Chairman Richard Clarida will deliver opening remarks on the second day of the 2-day Conference on Monetary Policy Strategy, Tools and Communications Practices held by the Chicago Federal Reserve Bank in Chicago, IL at 9.45 am ET.

Atlanta Federal Reserve Bank President Raphael Bostic will speak at the Atlanta Regional Housing Forum on housing affordability, followed by audience QA at 9.45 am ET.

Federal Reserve Member of the Board of Governors Michele Bowman will speak before the Senate Banking Committee at the confirmation hearing on her nomination to the Federal Reserve Board of Governors for a full 14-year term (her confirmation last year was for a partial term that expires January 31, 2020), in Washington, D.C. at 10.00 am ET.

Markit Economics’ Purchasing Manager’s Index or PMI for May will be published at 9.45 am ET. The consensus is for 50.9, down from 53.0 in April.

The Institute For Supply Management’s Non-Manufacturing Index for May will be issued at 10.00 am ET. The consensus is for 55.8, versus 55.5 in the prior month.

The Energy Information Administration or EIA’s Petroleum Status Report for the week will be released at 10.30 am ET. In the prior week, the Crude oil inventories were down 0.3 million barrels, while Gasoline inventories were up 2.2 million barrels.

Boston Federal Reserve Bank President Eric Rosengren will moderate panel discussion on the “Transmission of Monetary Policy to the Economy: Beyond the Headlines” at the Conference on Monetary Policy Strategy, Tools and Communications Practices held by the Chicago Federal Reserve Bank in Chicago, IL at 1.15 pm ET.

Beige Book, that is produced roughly two weeks before the monetary policy meetings of the Federal Open Market Committee, is expected at 2.00 pm ET.

Asian stocks ended mixed on Wednesday. Chinese stocks closed lower and Shanghai SE were down 0.03 percent at 2861.42. Hong Kong’s Hang Seng index rose half a percent to 26,895.44.

Japanese shares posted strong gains. The Nikkei average climbed 367.56 points or 1.80 percent to 20,776.10, posting its biggest daily percentage gain since March 26. The broader Topix index closed 2.07 percent higher at 1,530.08.

The latest survey from Nikkei revealed that the services sector in Japan continued to expand in May, albeit at a slower pace.

Australian markets eked out modest gains. The benchmark S&P/ASX 200 rose 26.10 points or 0.41 percent to 6,358.50 while the broader All Ordinaries index ended up 26.90 points or 0.42 percent at 6,443.60.

European shares are trading mostly up. Among the major indexes in the region, the CAC 40 Index of France is adding 27.01 points or 0.51 percent, the German DAX is progressing 43.69 points or 0.36 percent, the U.K. FTSE 100 Index is up 32.50 points or 0.45 percent and the Swiss Market Index is growing 64.37 points or 0.67 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks, is up 0.25 percent.

Source: Read Full Article