ADP jobs report comes in ahead of expectations
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U.S. stock-index futures pointed to a higher open on Wednesday, with the Dow on track to break above the 22,000 threshold for the first time ever in what could be its seventh straight daily rise.
The rally comes a day after Apple Inc.(AAPL) posted stronger-than-expected quarterly earnings (http://www.marketwatch.com/story/apple-shares-soar-as-fiscal-third-quarter-earnings-beat-expectations-2017-08-01) and iPhone sales that met expectations. The stock rose in premarket trading and was on track to open at a record level. The tech giant is the market's largest stock by market capitalization, which means it has an outsize weight on the overall moves of all three major indexes.
Futures for the Dow Jones Industrial Average were up 46 points, or 0.2%, to 21,951. The blue-chip benchmark is on track for its seventh straight daily rise, its longest such streak since February. On Tuesday closed up 0.3% (http://www.marketwatch.com/story/dow-futures-jump-more-than-100-points-signal-all-time-high-at-the-open-2017-08-01) at 21,963.92, its fifth straight closing record.
Meanwhile, futures for the Nasdaq-100 index rose 44.75 points, or 0.8%, to 5,931.75. Futures for the S&P 500 index climbed 2.5 point to 2,474.75, a rise of 0.1%.
Read:Apple's earnings-driven gain puts the Dow on pace to top 22,000 (http://www.marketwatch.com/story/apples-earnings-driven-gain-puts-the-dow-on-pace-to-top-22000-2017-08-02)
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"This is typically a weaker quarter for Apple, seasonally, so I was pleasantly surprised. Revenue was good and the outlook was good," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management. "Overall, earnings have been coming in good this season, with stocks beating on revenue and profits. The fact that the market is still reacting to that in a positive way tells me that stocks aren't in a bubble, that there's fundamental support."
Apple has been one of the market's biggest gainers thus far this year, up nearly 30%. The results could provide support to the idea that valuations in technology names are justified by their levels of growth.
Read: A quarter of S&P 500's 2017 climb due to five stocks (yes, those five) (http://www.marketwatch.com/story/a-quarter-of-sp-500s-2017-climb-due-to-five-stocks-yes-those-five-2017-07-27)
Don't miss:One giant reason why tech bubble talk may simply be overblown (http://www.marketwatch.com/story/one-giant-reason-why-tech-bubble-talk-may-simply-be-overblown-2017-08-02)
Adding to the positive tone on the day, private sector hiring remained strong in July (http://www.marketwatch.com/story/private-sector-continues-to-see-strong-job-gains-in-july-adp-says-2017-08-02)as employers added 178,000 jobs in the month, more than had been expected, according to ADP. The report is sometimes seen as a positive sign ahead of the closely watched payrolls report, which will be released on Friday.
"This is not a sign of an economy that's rolling over. This is a sign of an economy that's starting to accelerate," Jacobsen said.
Read:Apple's earnings have Wall Street learning to 'stop worrying and love the super cycle' (http://www.marketwatch.com/story/apples-earnings-have-wall-street-learning-to-stop-worrying-and-love-the-super-cycle-2017-08-02)
Among other movers, Match Group Inc.(MTCH) slid 6% ahead of the bell after the online dating company late Tuesday turned in earnings that fell short of forecasts (http://www.marketwatch.com/story/match-group-shares-slip-after-earnings-miss-announced-leadership-shuffle-2017-08-01) and announced a new chief executive.
Health plan administrator Humana Inc.(HUM) reported earnings that beat forecasts and lifted its full-year outlook (http://www.marketwatch.com/story/humana-beats-profit-expectatons-and-lifts-outlook-but-revenue-falls-shy-2017-08-02), while Burger King parent Restaurant Brands International Inc.(QSR) missed profit forecasts (http://www.marketwatch.com/story/burger-king-parent-restaurant-brands-misses-profit-revenue-estimates-2017-08-02).
Mondelez International Inc.(MDLZ) topped earnings forecasts and said its CEO Irene Rosenfeld will step down effective November.
Time Warner Inc. (TWX) rose 1.3% before the bell after its earnings easily beat forecasts.
Shares of Molson Coors Brewing Co. (TAP) slid 1.3% premarket after the brewer reported a drop in sales.
And after the market closes, Tesla Inc.(TSLA), Fitbit Inc.(FIT) and American International Group Inc.(AIG) are among major companies slated to report.
Read:Tesla earnings--Will Model 3 live up to the hype? (http://www.marketwatch.com/story/tesla-earnings-will-model-3-live-up-to-the-hype-2017-07-27)
Opinion:U.S. economy needs to create 4.4 million more jobs (http://www.marketwatch.com/story/economy-needs-to-create-44-million-more-jobs-2017-07-31)
In Federal Reserve news, Cleveland Fed President Loretta Mester will give a speech on the economic outlook at the Community Bankers Association of Ohio's annual convention in Cincinnati Ohio at 11 a.m. Eastern.
San Francisco Fed president John Williams will talk about monetary policy in Las Vegas, NV at 3:30 p.m. Eastern.
Other markets: The dollar resumed its selloff Wednesday (http://www.marketwatch.com/story/dollar-languishes-at-15-month-low-with-adps-jobs-report-waiting-in-the-wings-2017-08-02), with the ICE Dollar Index down 0.2% at 92.829.
Oil prices were swinging between gains and losses (http://www.marketwatch.com/story/oil-extends-losses-as-oversupply-fears-return-us-data-loom-2017-08-02), after the American Petroleum Institute on Tuesday said U.S. crude inventories unexpectedly rose last week, by 1.8 million barrels.
Gold dropped 0.5% to $1,272.60 an ounce.
Asian markets closed mixed (http://www.marketwatch.com/story/asian-markets-get-boost-from-apples-strong-earnings-2017-08-01), European stocks traded mostly lower.
(END) Dow Jones Newswires
August 02, 2017 09:24 ET (13:24 GMT)