U.S. Futures Continue to Push Higher
U.S. stocks are set to continue to push higher, as investors take comfort from signs of economic strength ahead. They are also looking past domestic civil unrest now.
Cash indices are over 30% above their first-quarter lows, with the DJIA at its highest level since 6th of March. The S&P 500 was at its highest since March 4, and the Nasdaq Composite since Feb. 20.
Data from the Chinese services sector showed they are growing at pre-pandemic levels. There were signs as well that the worst was over for euro-zone businesses.
These are signs of economic growth returning, helped by fiscal stimulus, as the pandemic passes its peak. This overshadows the continued civil unrest that has plagued many cities across America over the last few days.
Investors will now focus on ADP’s monthly employment report, a precursor to Friday’s official payrolls release.
This expects to show another 9 million jobs lost in May, a horrific figure. But this is an improvement from the last report which showed a loss of 20.2 million from payrolls. This figure is the most in the history of the report.
U.S. Futures Rise
In the stock market, Lyft (NASDAQ:LYFT) rose 5% in premarket trading. This was after the ride-hiring firm reported a 26% jump in rides on its platform in May from April. This was helped by strong growth in cities where coronavirus-induced restrictions have been eased.
Zoom Video Communications (NASDAQ:ZM) gained 1.2% after the videoconferencing service reported a blockbuster quarter. The coronavirus pandemic has fueled a boom in remote working and socializing.
Meanwhile, oil prices sold off Wednesday, consolidating after recent sharp gains amid doubts about the next OPEC meeting.
These concerns were on OPEC and its allies to be able to agree a production policy for July very soon. It is due to suspicions that some countries are already producing above their quota.
The U.S. will be releasing its official crude inventory data. The American Petroleum Institute’s data came out on Tuesday and it indicated a slight draw in stocks last week.
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