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U.S. stock futures hold gains after ADP data; Dow up 0.45%

Published 08/31/2011, 08:57 AM
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Investing.com – U.S. stock futures pointed to a higher open on Wednesday, as weaker-than-expected U.S. non farm employment data underlined expectations for additional stimulus from the Federal Reserve.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.45%, the S&P 500 futures indicated an increase of 0.55%, while the Nasdaq 100 futures signaled a 0.5% gain.

Stock futures held on to gains after payroll processing firm ADP said that U.S. non-farm private employment rose by 91K in August, short of expectations for a gain of 103K.

Meanwhile, in earnings news, shares in the world’s largest mining equipment maker Joy Global jumped 4.2% after reporting a 46% gain in fiscal third quarter profit. The upbeat results prompted the company to raise its earnings outlook for the remainder of the year.

The group also announced the sale of its drilling products business to Cameron International for in a deal valued at nearly USD375 million.

Shares in clothing maker PVH climbed 2.5% after reporting second quarter revenue rose 21% to USD1.33 billion, as strong performances in its Calvin Klein business and Tommy Hilfiger label boosted results.

The largest U.S. oil producer Exxon-Mobil saw shares edged 0.65% higher after announcing an agreement with Russian oil giant Rosneft to explore for oil in the Russian Arctic and the Black Sea.

On the downside, shares of media conglomerate Lions Gate Entertainment dropped 5.1% after the company said that billionaire investor Carl Icahn will sell his 44.2 million shares in the company. 

Meanwhile, Oracle shares could be active after the Wall Street Journal reported that U.S. authorities were investigating whether the business software maker violated the Foreign Corrupt Practices Act in some of its dealings in Africa.

Across the Atlantic, European stock markets were broadly higher as speculation that the Federal Reserve will introduce further easing measures to prop up the U.S. economy underpinned demand for equities.

The EURO STOXX 50 jumped 1.9%, France’s CAC 40 rallied 2%, Germany's DAX surged 1.95%, while Britain's FTSE 100 gained 1.2%

During the Asian trading session, Hong Kong’s Hang Seng Index climbed 1.65%, while Japan’s Nikkei 225 Index ended flat.

Later in the day, the U.S. was to publish data on manufacturing activity in the Chicago area and factory orders.

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