NEW YORK (TheStreet) -- Stock futures were signaling Wednesday a continuation of the previous day's sharp gains as global markets joined the U.S. rally amid a better-than-expected ADP employment report, and ahead of factory orders data and the Federal Reserve's Beige Book release.
The Dow Jones Industrial Average closed at a record high on Tuesday, marking a new peak in a four-year rally that began in March 2009 at the depth of the financial crisis, helped in part by global central bank stimulus and S&P 500 companies largely exceeding earnings and revenue estimates.
"The only place you can find yield right now is the equity markets. So you have a lot of money coming in here chasing this," Keith Bliss, senior vice president of Cuttone, told TheStreet late Tuesday. While Bliss was predicting a further move higher, he also said to bear in mind that "what's interesting about this move is the move [Tuesday] is being led by traditionally defensive types of stocks. Dividend payers, utilities, stocks you would see when the market is starting to sell off .. so that's the thing that gives a little bit of pause for thought here."
Futures for the Dow Jones Industrial Average were rising 54 points, or 50.23 points above fair value, at 14,287. Futures for the S&P 500 were up 6.75 points, or 5.31 points above fair value, at 1543.75. Futures for the Nasdaq were ahead by 6.5 points, or 6.2 points above fair value, at 2804.75.Ahead of the nonfarm payrolls report on Friday, the ADP jobs report Wednesday morning showed a decline in private jobs to 198,000 in February, from an upwardly revised 215,000. Economists expected a fall in private-sector jobs to 170,000.
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