Stock futures pointed to a higher open on Wednesday as markets rebounded from their first day of losses in more than a week and investors looked ahead to Friday's jobs report.
S&P 500 futures were up 0.24%, Dow Jones Industrial Average futures added 0.2%, and Nasdaq futures rose 0.44%.
Wall Street's seven-day winning streak came to an end in a groggy return after the long Memorial Day weekend. The S&P 500 and the Nasdaq retreated from records set on Friday and ended lower for the first time in eight sessions.
The U.S. jobs report on Friday is on watch in this holiday-shortened week. The nonfarm payrolls report for May is expected to demonstrate continued strength in the labor market. The U.S. economy is expected to have added 175,000 jobs in May, while the unemployment rate is forecast to hold at 4.4%, according to FactSet estimates. Hourly earnings are anticipated to have risen 0.2% in May.
Friday's jobs report likely won't sway the Federal Reserve's decision for this meeting, but could influence the pace of hikes for the rest of the year. The Federal Open Market Committee, the decision-making arm of the central bank, is next set to meet June 13-14. Markets already have high expectations for an interest-rate increase at the next meeting of the FOMC, the second of three expected hikes this year. Wall Street has priced in a nearly 89% chance of a 25-basis-point increase to the federal funds rate when the FOMC meets, according to CME Group fed funds futures.
Inflation trends have been uneven, but they are not deteriorating, Dallas Fed President Robert Kaplan said in comments at the C. Peter McColough Series on International Economics in New York. On Tuesday, Kaplan said that the Fed can continue to raise interest rates while also reducing its balance sheet this year. Kaplan, a voting member of the FOMC, anticipates two more interest-rate hikes this year.
The economic calendar in the U.S. on Tuesday includes Chicago PMI at 9.45 a.m. EST, the pending home sales index at 10 a.m., and the Beige Book at 2 p.m.
Crude oil moved sharply lower again on Wednesday as prices continued to spiral over global oversupply worries. Commodities have been under pressure since the Organization of Petroleum Exporting Countries made the expected move to extend their output cut agreement by another nine months, but failed to enact further price-stabilizing measures.
West Texas Intermediate crude was down 2.1% to $48.57 a barrel on Wednesday.
Michael Kors (KORS) sank 7.6% in premarket trading after swinging to a fourth-quarter loss. A loss of $26.8 million, or 17 cents a share, compared to earnings of $177 million, or 98 cents a share, in the same quarter a year earlier. Michael Kors booked a $193.8 million impairment charge tied to weak performances from certain retail locations.
Adjusted earnings of 73 cents a share came in 3 cents higher than estimates. Revenue of $1.06 billion also beat consensus of $1.05 billion. CEO John Idol said in a statement that "fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels." Idol also conceded that the company's "product and store experience" did not engage consumers.
The handbag and accessories retailer anticipates first-quarter earnings between 60 cents and 64 cents a share, below estimates of 79 cents.
Vera Bradley(VRA) - Get Report declined 3% after posting a narrower-than-expected loss but sales that came in shy of estimates. An adjusted loss of 9 cents a share came in 4 cents less than what analysts anticipated. Revenue of $96.1 million fell short of estimates, though. Vera Bradley announced plans to close as many as 15 of its underperforming locations over fiscal 2018.
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