Stock futures rally ahead of ADP jobs report

U.S. stock futures rallied Wednesday as traders awaited an update on the state of the labor market.

Dow Jones Industrial Average futures rose 115 points, or 0.33%, while S&P 500 futures and Nasdaq 100 futures jumped 0.34% and 0.21%, respectively. The early advance comes after all three of the major averages gained in August with the S&P extending its monthly winning streak to seven. 

The ADP jobs report, which will be released at 8:30 a.m. ET Wednesday, is expected to show private payrolls last month added 613,000 workers. The report will set the stage for Friday’s jobs report. 

In stocks, Robinhood Markets Inc. announced the U.S. Securities and Exchange Commission was reviewing a recent filing for a share sale by existing stockholders. The trading app developer said no sales announced in the filing can be made until the SEC investigation is complete. 

In earnings, Campbell Soup Co. warned higher packaging, ingredients and transportation costs would dent margins, and guided full-year earnings and revenue below expectations.  

PVH Corp., which is the owner of brands including Tommy Hilfiger and Calvin Klein, raised its full-year outlook following a strong performance from its international business, particularly Europe. The clothing company, which swung to a profit after posting a loss a year ago, beat analysts’ estimates on both earnings and revenue. 

Chewy Inc. and Smith & Wesson Brands Inc. are among the companies scheduled to report their quarterly results after Wednesday’s closing bell.  

In deals, a U.S. regulator rejected a voting trust structure, on antitrust grounds, that would have allowed Canadian National Railway Co. to move ahead with its plans to buy railroad operator Kansas City Southern for $29 billion. The decision could open the door for Kansas City Southern to pursue a separate offer from Canadian Pacific Railway Ltd. 

Elsewhere, miners including Freeport-McMoRan Inc. and BHP Group Ltd. slid after weak Chinese factory data pushed copper prices lower.

In commodities, West Texas Intermediate crude oil ticked up 10 cents to $68.60 per barrel and gold slipped $2.30 to $1,815.80 an ounce.

Overseas markets were broadly higher.


France’s CAC 40 paced the gains in Europe, trading up 1.05%, while Britain’s FTSE 100 and Germany’s DAX 30 climbed 0.67% and 0.21%, respectively.

In Asia, Japan’s Nikkei 225 rose 1.29%, China’s Shanghai Composite added 0.65% and Hong Kong’s Hang Seng index edged up 0.58%.