US stock index futures surged on Wednesday ahead of the release of labor market data. The employment report is expected to indicate whether or not the US job market has improved after a hampering winter.
The Standard and Poor’s 500 index futures jumped 0.1% while the NASDAQ composite index futures advanced 0.2%. Dow Jones industrial average index futures gained modestly.
The S&P 500 hit a record high at closing on Tuesday, benefiting from investor optimism after US manufacturing data suggested that economy growth was picking up.
According to USA Today, foreign investors buying US stocks are partly responsible for the market’s recent rally. Increased buying of Wall Street shares should see US stock indexes continue to edge higher.
The monthly ADP employment report on the private sector is scheduled for release at 8:15 am. ET. Investors will be keen to note any indications of a job market that’s recovering from the winter slumber, even as the Labor Department prepares to release an unemployment report on Friday.
Investors expect that the labor market will have added 195,000 jobs compared with 139,000 registered in February, as Reuters reports.
The price of MannKind Corp’s shares almost doubled to hit $7.94, having gained 97.5% in premarket trading on Wednesday. The company’s shares soared after its inhaled drug for treatment of diabetes was given a clean bill of health by US health advisers.
S&P 500 e-mini futures grew 2.5 points to stand slightly above the fair value position, a method of assessing share pricing by considering factors such as interest rates and dividends. Dow Jones industrial was 24 points higher while NASDAQ 100 futures added 8.25 points.
But Witold Bahrke, senior strategist at Copenhagen-based PFA Asset Management is quoted by Bloomberg as saying about the latest growth of US stocks, “Growth appears not too strong to feed the Fed’s hawks but neither too slow to question the recovery, re-emphasizing the sweet-spot concept — which should be the most favorable environment for risky assets in 2014.”
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