NEW YORK (TheStreet) -- Stock futures were moving confidently higher on Wednesday after the trade deficit in April subsided to more normal levels and 201,000 jobs were added to U.S. private payrolls in May.
S&P 500 futures were up 0.45%, Dow Jones Industrial Average futures climbed 0.5%, and Nasdaq futures added 0.73%.
The U.S. trade deficit retreated 19.2% in April to $40.9 billion after hitting a seven-year high of $50.6 billion in March that was tied to West Coast port closures. Economists expected a slightly wider deficit of $43.5 billion. The lower trade deficit will likely boost second-quarter GDP as the economy continues to comb out the kinks from port backlogs.
The U.S. private sector added 201,000 jobs in May, the most jobs added in four months, according to the ADP jobs report. Analysts had expected an increase of 200,000 after 169,000 additions in April.
"The relative strength in today's report is an encouraging sign that the labor market, and the economy, is re-accelerating after a winter slowdown," said Dan Greenhaus, chief strategist at BTIG Research. "One report does not a trend make but in conjunction with other such data points, it appears the second quarter is set to be much better than the first quarter."
The private payrolls data foreshadows Friday's widely anticipated nonfarm payrolls from the Labor Department. Economists expect the U.S. economy to have added 225,000 jobs in May.
The ECB kept its key interest rates unchanged at lows on signs the eurozone is steadily improving thanks to the central bank's monthly bond purchases. The ECB left its main interest rate at 0.05%, a level it has remained at since last September. Analysts expected the ECB to leave the rate steady.