This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Futures Follow Overseas Markets Higher

Stocks in this article: MSFT

NEW YORK ( TheStreet) -- Stock futures were pointing to a decidedly higher open for the major market averages Wednesday after strong economic indicators out of China and Australia helped buoy markets overseas.

And futures held on to those gains even after a labor market report showed the first private payroll decline there since January.

Futures for the Dow Jones Industrial Average were up by 96 points at 10,102 and were 96.28 points above fair value. Futures for the S&P 500 were ahead by 11.50 points at 1059.8 and were 11.52 points above fair value, and Nasdaq futures were gaining 23.50 points and were 24.92 points above fair value.

Stocks hemmed and hawed throughout the Tuesday session, only to finish flat on the day following a mixed batch of data and the release of minutes from the Federal Open Market Committee's most recent policy-making meeting. The Dow also set a dubious milestone, turning in its worst August performance since 2001.

But Wednesday brought with it improving news from overseas. According to The Associated Press, the Chinese factory sector rose for the first time in four months, while Australia's economy raced higher in the second quarter, notching its fastest growth rate since 2007.

The string of morning economic indicators here in the U.S. got off to a weak start with a prelude to Friday's highly anticipated government jobs report. Payroll processor Automatic Data Processing (ADP) said private payrolls shed 10,000 jobs in August.

Wall Street economists had believed payrolls would pick up a modest 13,000 jobs, according to The reported July gain was also scaled back in the report's revisions, now showing private managers added 37,000 positions instead of the gain of 42,000 originally reported.

Earlier Wednesday, Challenger, Gray & Christmas said announced layoffs were down 17% this month, making it the lowest monthly tally in over a decade.

After a Tuesday report showed that factory activity slowed throughout the Midwest, a national gauge to be released at 10 a.m. ET is projected to show a similar trend. The Institute for Supply Management's manufacturing index is projected to land at 52.9 for August, down from the 55.5 the month before.

The Commerce Department will also release its construction spending stats at the same time, which are expected to show a 0.7% decrease in July. Meanwhile, investors will be sifting through auto and truck sales data throughout the day.

Deal speculation continued percolating today after The Wall Street Journal said several private-equity shops have been in talks to buy Burger King (BKC).

BP's (BP) ongoing fund-raising efforts to pay for costs related to the Gulf oil spill continued Wednesday after the integrated oil operation said it sold a Malaysian ethylene and polyethylene unit for $363 million.

Apple (AAPL) will be hosting a product unveiling event in San Francisco on Wednesday, where it's expected to show off a fresh slate of iPod devices.

Microsoft (MSFT) is reportedly in search of a partner in China to help the firm break through in the country's internet search market. Microsoft's CEO in China told The Wall Street Journal that the software maker is planning to invest $100 million in companies there.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs