Stock Futures Gain on U.S. Job Gains
NEW YORK (TheStreet) -- U.S. stock futures pointed to a higher open Wednesday following Tuesday's plunge as the markets cheered better-than-expected American payrolls data.
Futures for the Dow Jones Industrial Average were gaining 53 points, or 49.9 points above fair value, at 12,797. Futures for the S&P 500 were up 6.4 points, or 5.9 points above fair value, at 1348, and futures for the Nasdaq were spiking 13 points, or 13.7 points above fair value, at 2603.
The first of a spate of U.S. job reports turned out better-than-expected Wednesday, with Automatic Data Processing reporting that private-sector jobs rose 216,000 in February, beating the expectation by analysts of an addition of 200,000 jobs during the month, according to a Thomson Reuters poll. January's number meanwhile was upwardly revised to an addition of 173,000 jobs. The report is a precursor to the highly anticipated nonfarm payrolls report on Friday.
U.S. stocks saw their biggest one-day drop in nearly three months Tuesday as the markets digested more evidence that Europe is sliding deeper into the doldrums and dragging down the pace of global growth.In Europe, worries that a debt swap deal in Greece would not be completed by Thursday's deadline were easing, with Greece's six largest banks agreeing to take part in the country's debt swap, according to the Finance Ministry. The banks are among the biggest private holders of Greece's sovereign debt, according to Bloomberg, and are integral to the completion of the debt swap deal. Their participation should encourage smaller bondholders to take writedowns on their holdings as well. Participants of the deal will see a loss of 53.5% of the value of their Greek bond holdings. London's FTSE was rising 0.3%, and Germany's DAX was adding 0.25%. In Asia, benchmark indices fell after Australia's fourth-quarter gross domestic product was reported to have grown at a disappointing 0.4%. Japan's Nikkei Average closed behind by 0.64%, while Hong Kong's Hang Seng index finished lower by 0.86%.
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