Wall Street futures are indicating a moderately positive outlook as pre-bell trading begins on Wednesday, with traders actively seeking buying opportunities following the sell-offs observed on Tuesday. In the early morning session, yields on benchmark 10-year US Treasuries approached 4.70%. This movement came on the heels of a robust employment report, specifically the Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday, which fortifies expectations for a less accommodative Federal Reserve moving into 2025. Traders are also keenly awaiting the imminent private-sector ADP employment report scheduled to be released at 8:15 am ET.
This report is often viewed as a precursor to the national employment situation bulletin due on Friday, making it a pivotal point of focus for analysts and market participants alike. Additionally, later in the day at 2 pm ET, the minutes from the Federal Reserve’s policy meeting conducted on December 17-18 will be unveiled, which market watchers will scrutinize for insights into the central bank's strategic thinking and future policy adjustments. In terms of index performance, futures data currently show the S&P 500, Nasdaq, and Dow Jones indices trending upwards by approximately 0.3% compared to their closing values on Tuesday. It is important to note that the nation's securities exchanges will remain closed on Thursday as a mark of respect for the recently deceased former US President, Jimmy Carter. Overnight trading in Asian markets reflected a mostly downward trend, influenced by decreased expectations regarding central bank accommodation from Beijing, Tokyo, and Washington.
Conversely, European bourses showcased a modest upswing during midday trading across the continent. In the context of corporate earnings, major players such as Albertsons Cos., Acuity Brands, and MSC Industrial Direct are expected to report their earnings before the bell, adding another layer of anticipation for investors. Alongside the Fed minutes and the ADP employment report, the economic calendar also highlights the release of the weekly MBA mortgage applications report at 7 am ET, followed by the weekly jobless claims report set to be published at 8:30 am. Additionally, at 10 am, the November wholesale inventories report will be released, which will be succeeded by the weekly EIA petroleum status report at 10:30 am.
Federal Reserve Governor Christopher Waller is scheduled to deliver remarks at 8:30 am, further contributing to the economic narrative of the day. In premarket trading, Bitcoin is positioned at $95,806, while West Texas Intermediate crude oil sees a rise, currently trading at $74.71. The yields on 10-year US Treasuries are reported at 4.68%, and spot gold is listed at $2,655 per ounce.
Market indicators also reflect significant movements with $US30 and $US500 futures indicating active trading dynamics..