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Dow, S&P 500 futures point to the fourth consecutive gain before the private sector jobs report

US stock index futures pointed to gains in early Wednesday as investors scrutinized corporate earnings earnings and awaited a reading of the private sector labor market that could serve as a precursor to official July job data.

Reports of some progress in Congress towards a new coronavirus aid package also offered the bulls some creak early in the session.

How do equity benchmarks perform?

Futures for the Dow Jones Industrial Average YMU20,
+ 0.69%
+ 0.69%
increased 189 points, or 0.7%, to 26,906; those for S&P 500 index ES00,
+ 0.55%,
+ 0.55%
increased 17.85 points or 0.5% to 3,317.25; while Nasdaq-100 futures NQ00,
+ 0.33%
+ 0.33%
picked up 33 points, or 0.3%, at 11,119.

On Tuesday, the Dow DJIA,
+ 0.61%
picked up 164.07 points, or 0.6%, at 26,828.47; the S&P 500 index SPX,
+ 0.36%
rose 11.90 points, or 0.4%, to 3,306.51, while the Nasdaq Composite Index COMP,
+ 0.35%
finished 38.37 points, or 0.4%, to close at 10,941.17, finishing the 30th record for 2020.

What drives the market?

The stock market looked set to get off to a good start on Wednesday, in hopes of moving toward another fiscal package in Congress and merger news between virtual healthcare platforms, which supports the purchase.

Late Tuesday reports suggested that after more than a week of near-daily face-to-face meetings, Trump government officials and congressional democratic leaders are working to reach a coronavirus bill by the end of the week, even if the parties are far apart the problems.

US Treasury Secretary Steven Mnuchin told reporters on Capitol Hill late Tuesday about the new timeline. “We are pleased to report that while we still have many outstanding issues – I just want to be very clear, we are not about to make a deal – but we have tried to establish a timeline that we will try to reach an overall agreement by the end of this week, if we can, so that the legislation can be adopted next week, ”he said.

Wednesday also brings the July ADP ADP,
+ 1.69%
private sector labor market report at 8.15 am. The consensus estimate is for a profit of 1.88 million jobs, according to average analyst projections probed by Econoday. Last month, private sector employers added 2,369 million jobs in June, ADP reported, far behind the 4.8 million jobs the labor department registered this month.

Also on deck is an update to the health of the services sector, with IHS Markit lecture at 9:45 am and then the better followed services sector read by the Institute for Supply Management at 10:00 am.

In other economic news, Wall Street will look forward to a report on the US trade deficit at 8:30 a.m. for June, a quarterly repayment of the Treasury at 9:00 a.m., which will help fixed income investors determine the upcoming Treasury auctions.

In Fed speakers, Richard Clarida, number 2 central bank, would speak on CNBC at 8:30 AM and Cleveland Fed president Loretta Mester would speak at a virtual event at 5:00 PM.

Better than expected quarterly results late Tuesday from Dow component and entertainment and amusement park giant Walt Disney Co.
+ 0.80%,
although it reported a loss of $ 3.5 billion, it also helped make the markets bullish. The company praised 100 million subscribers to its streaming platforms during the pandemic and announced it would release the live-action version of “Mulan” through Disney + for $ 29.99, a new approach to that streaming service.

Separately, Teladoc Health Inc.. TDOC,
+ 5.17%
and Livongo Health Inc.
+ 5.78%
said on Wednesday that they have agreed to pool a deal worth $ 18.5 billion to create a company that can meet a spectrum of health needs using virtual care.

Meanwhile, the US and China said they agreed to hold high-level talks on August 15 to assess Beijing’s compliance with the bilateral trade agreement signed early this year, The Wall Street Journal reported Tuesday. Relations have deteriorated in recent months, with the Trump administration hammering Beijing over the coronavirus outbreak, Hong Kong, and the treatment of Uyghurs in western China. The negotiations between Microsoft Corp.
TikTok, a China-owned entertainment platform, has also created some friction between the two superpowers.

In the area of ​​public health, the global census for confirmed cases of COVID-19 climbed above 18.5 million on Wednesday, according to data collected by Johns Hopkins University, and the death toll rose to 701,027.

Which stocks are in focus
  • Shares of Humana Inc.. BROMES,
    were up 3% in premarket trading on Wednesday, after the healthcare company reported second-quarter earnings and revenues that exceeded expectations, while maintaining adjusted earnings prospects.

  • CVS Health Corp.. shares CVS,
    + 1.75%
    skyrocketed in premarket trading Wednesday, after the drugstore chain broke second-quarter estimates and elevated full-year prospects, despite the impact of the coronavirus pandemic on its operations

  • Shares of Regeneron Pharmaceuticals Inc.. REGN,
    + 0.50%
    rose 3.2% towards a record high in premarket trading Wednesday, after the biotechnology company reported second-quarter earnings and revenues that exceeded Wall Street’s expectations, saying it expects clinical studies to generally stay on track in light of the COVID-19 pandemic.

  • Lumber Liquidators Holdings Inc. LL,
    reported on Wednesday that it came to a surprising second quarter profit as sales fell less than expected as sales trends improved during the quarter as markets reopened after COVID-19 related shutdowns.