U.S. Stocks Set To Open Higher As Economy Lost Less Jobs Than ExpectedS&P 500 futures are pointing to a higher open after the release of ADP Employment Change report.
ADP Employment Change Report Is Much Better Than Expected
ADP Employment Change report showed that 2.8 million jobs were lost in May compared to 20.2 million in April. Analysts expected that the private sector eliminated as much as 9 million jobs in May.
It is not surprising to see S&P 500 futures gain ground in the premarket trading session following the better-than-expected ADP Employment Change report. The market has previously ignored bad employment reports, so an optimistic report should serve as a positive catalyst.
Later in the day, traders will have to digest Services PMI and Composite PMI data for May. Services PMI is expected to increase from 26.7 in April to 36.9 in May, while Composite PMI is projected to grow from 27.0 to 36.4.
Oil Falls On Doubts Over OPEC+ Meeting
Oil is under pressure following a Bloomberg report which stated that OPEC+ meeting could be postponed from June 4. While it is believed that Saudi Arabia and Russia were able to reach some consensus, the leading OPEC+ members were not happy with cheating from other participants.
According to Bloomberg, Iraq and Nigeria failed to cut production according to their quotas. In fact, they have delivered less than half of the agreed production cuts. Without a firm commitment from these countries, an early meeting scheduled for June 4 would be impossible.
The oil rally was a major contributor to the improved general market sentiment so even those traders who are not interested in oil-related equities should watch the story closely.
Zoom Reports Stellar Earnings
The company which enjoyed a huge boost from the coronavirus pandemic, Zoom Video Communications, has reported its first-quarter results yesterday after the market close.
Revenue of $328 million increased by 169% year-over-year, beating analyst estimates by as much as $125 million. The company stayed profitable on a GAAP basis and reported earnings of $0.09 per share.
The stock is already up more than 200% year-to-date but may have further room for upside after the great earnings report. Zoom’s success may add optimism to the market since it highlights the opportunities provided by the coronavirus crisis.
For a look at all of today’s economic events, check out our economic calendar.