Wall Street saw gains before the open on Wednesday as several companies reported strong quarterly results ahead of more updates on the labor market.
Futures for the Dow Jones Industrials increased by 0.1% before the bell, while futures for the S&P 500 rose by 0.2%.
While the markets digest the latest jobs data and await a report on the health of the service sector, investors are paying close attention to corporate news and earnings reports.
Hewlett Packard Enterprise, the information technology company, saw a premarket rise of 13.9% after exceeding Wall Street's forecast and raising its full-year profit guidance. Cybersecurity company Crowdstrike also surpassed analysts' sales and profit targets, leading to an 8.8% increase in its shares.
Stitch Fix, the online custom clothing company, climbed over 17% in premarket trading after posting a smaller loss than expected with strong third-quarter sales.
Dollar Tree initially received a boost after considering selling its Family Dollar stores, but eventually declined by 2.6% before the bell.
Payroll company ADP reported that private employers added 152,000 jobs in May, lower than expected, reflecting a decline in manufacturing jobs. The report could provide a preview for the government's more comprehensive May jobs report due on Friday. The labor market has held up better than anticipated amid elevated interest rates, although signs indicate potential softening. On Tuesday, the government reported the fewest number of job openings since 2021.
The Federal Reserve began raising interest rates in March 2022 to combat high inflation that emerged as the U.S. economy rebounded rapidly from the pandemic recession. Although the economy is showing signs of slowing, recent data has been mixed. Most analysts predict that the Fed will only implement one interest rate cut this year.
Later on Wednesday, the ISM's services report will provide insights into the services sector, where the majority of Americans work.
In midday trading in Europe, France's CAC 40 rose by 0.8%, Germany's DAX surged by 0.9%, and Britain's FTSE 100 edged up by 0.3%.
In Asian trading, Japan's Nikkei 225 decreased by 0.9% to close at 38,490.17. Australia's S&P/ASX 200 increased by 0.4% to 7,769.00, South Korea's Kospi jumped by 1.0% to 2,689.50, Hong Kong's Hang Seng slipped by 0.1% to 18,424.96, and the Shanghai Composite dipped by 0.8% to 3,065.40.
In energy trading, benchmark U.S. crude rose by 28 cents to $73.53 a barrel, while Brent crude added 30 cents to $77.82 a barrel.
In currency trading, the U.S. dollar strengthened to 156.18 Japanese yen from 154.84 yen, and the euro declined to $1.0862 from $1.0883.
On Tuesday, the S&P 500 increased by 0.2%, with more stocks falling than rising within the index. The Dow Jones Industrial Average rose by 0.4%, and the Nasdaq composite added 0.2%.
