US Stock Futures Rise Ahead of Reading on Labor Market

New York (Jan 4)  Stock futures moved slightly higher on Wednesday in the second day of trading in 2017 as investors awaited a reading on the health of the labor market.

S&P 500 futures were up 0.17%, Dow Jones Industrial Average futures gained 0.15%, and Nasdaq futures climbed 0.16%.

The Dow failed to secure the 20,000 milestone again on Tuesday, but not for lack of trying. The blue-chip index came within 60 points of the level during Tuesday's session before a surprise selloff in crude oil spooked markets. The Dow went on a tear over the final two months of 2016 as investors placed bets that a Donald Trump administration would yield higher infrastructure spending.

The ADP Employment Report for December, out before the bell, will highlight the health of the U.S. labor market before the official U.S. jobs report on Friday. The Labor Department's nonfarm payrolls report, the most closely watched piece of data of each month, is expected to continue to showcase strength. In November, the unemployment rate dropped to 4.6% to 4.9% and the U.S. economy added 178,000 jobs.

On Wednesday afternoon, the Federal Reserve will release minutes from its December meeting in which it raised interest rates for only the second time in roughly a decade. At that meeting, the central bank opted to hike interest rates by 25 basis points, putting the fed funds rate at 0.5% to 0.75%. The decision was unanimous. The Fed said the near-term risks to its economic outlook appear "roughly balanced."

The Fed also raised its forecasts to show three likely rate hikes in 2017, up from two previously predicted. The Fed kept its forecast for three hikes in both 2018 and 2019.

Source: TheStreet