US stocks tend slightly higher hours before Thursday’s opening bell

U.S. Equity Futures are trading slightly higher ahead of Thursday’s opening bell.

An ADP report showed that 330,000 jobs were created by the private sector in July, nearly half of the number expected by economists. Hiring bottlenecks continue to hold back the job market, according to ADP. Federal Reserve policymakers have said the recovery in the labor market is a key factor in monetary policy decisions.

Disappointing employment data weighed on Wall Street. The S&P 500 index fell 0.5% to 4,402.66 on Wednesday, falling from an all-time high set the day before.

ROBINHOOD’S STOCK INCREASES UP TO 82%

The Dow Jones Industrial Average fell 0.9% to 34,792.67. The Nasdaq composite, however, added 0.1% to 14,780.53. The Dow Jones and the Nasdaq both hit all-time highs last week.

Strong earnings reports were not enough to drive many companies’ shares higher. General Motors fell 8.9%, despite exceeding analysts’ earnings expectations and increasing its forecast. CVS Health lost 2.9% after posting strong results.

US equity futures were trading slightly higher ahead of Thursday’s opening bell. (Associated press)

Online broker Robinhood, which debuted in the market last week, jumped 50.4%. Market experts have warned that the stock could experience uneven performance due to its popularity with small investors.

Employment was in the spotlight. On Wednesday, payroll processor ADP revealed that the US private sector created 330,000 jobs in July, below analysts’ expectations.

The US Department of Labor will release a more comprehensive employment report on Friday. Economists predict that US employers created 700,000 jobs in July, reducing the national unemployment rate to 5.7% from 5.9%, according to FactSet.

The ADP report “fell far short of expectations,” said Yeap Jun Rong of IG.

“While there has not been a clear correlation between ADP data and non-farm payrolls, the slowdown in hiring in the leisure and hospitality sectors appears to be raising some concerns about the increase in cases. virus in July with some impact, ”he said. .

END OF MIXED STOCKS BECAUSE ADP JOB DATA IS SHORT, GM TANK SHARES

Meanwhile, Asian stocks were mixed on Thursday as traders waited for more advice on the US economic recovery.

The Nikkei 225 in Tokyo closed up 0.5% at 27,728.12. The Kospi in South Korea lost 0.1% to 3,277.94, while the Hang Seng in Hong Kong slipped 1% to 26,152.20 in afternoon trading.

The Shanghai Composite Index fell 0.3% to 3,465.89. The Sydney S & P / ASX 200 gained 0.1% to 7,511.10. Shares fell in Singapore but rose in Malaysia and Indonesia.

Concerns have grown around the spread of the delta variant of the coronavirus in the United States, Europe and Asia, and particularly in China, which is on high alert as it faces hundreds of new cases.

China has cordoned off residential communities, suspended flights and trains, and ordered mass coronavirus testing in Wuhan, the city where the disease was first detected in late 2019. Although China’s numbers are low by Compared to outbreaks elsewhere, its containment strategies and the subsequent impact on its large economy is being watched closely.

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In energy markets, benchmark US crude fell 13 cents to $ 68.02 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the basis of international oil prices, fell 28 cents to $ 70.10 a barrel in London.

The US dollar rose to 109.74 Japanese yen from 109.47 yen on Wednesday. The euro fell to $ 1.1832 from $ 1.1843.