GM, ADP job growth lifts stocks
3 min readPanel on today’s markets
U.S. equity futures were modestly higher on Wednesday as investors digested General Motors earnings after the automaker reaffirmed its full-year guidance and ADP’s report which showed companies added 742,000 jobs last month, slightly missing the 800,000-job increase that economists surveyed by Refinitiv had predicted.
ADP SHOWS 742,000 JOBS ADDED
The major futures indexes suggest a gain of 0.3% when the trading begins in Wall Street with the Nasdaq slightly higher.
GM CEO MARY BARRA OPTIMISTIC ON REMAINDER OF 2021
This follows Tuesday’s mixed market which drove the Nasdaq to its worst session since March, tech laggards also pulled the S&P 500 lower. The Dow Jones Industrial Average managed to squeeze out a gain late in the session aided by Caterpillar.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 34133.03 | +19.80 | +0.06% |
| SP500 | S&P 500 | 4164.66 | -28.00 | -0.67% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13633.503441 | -261.61 | -1.88% |
GM reaffirmed its full-year guidance with the shares set to open with a gain of 2%. CEO Mary Barra, in a letter to investors, said “We are also reaffirming our guidance for the full year, and based on what we know today, we see results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range we shared earlier this year” this despite ongoing production challenges tied to the chip shortage.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.22 | -1.96 | -3.43% |
Along with ADP’s report, the Institute for Supply Management will report its non-manufacturing PMI for April. This key gauge of activity in the services sector of the economy is expected to expand further into record territory to 64.3, taking out the previous month’s record high of 63.7. Any reading above 50 indicates expansion.
Most economic indicators point to improving conditions, but investors are worried about renewed coronavirus outbreaks and a possible uptick in inflation.
Remarks by Treasury Secretary Janet Yellen appeared to stoke those worries. Selling on Wall Street accelerated after Yellen said interest rates may have to rise to keep the economy from overheating. She later downplayed her comments during an interview with The Wall Street Journal after markets closed.
US TRADE DEFICIT HITS RECORD
Facebook also in focus as the company prepares to decide whether to reinstate President Trump’s account.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | FACEBOOK, INC. | 318.36 | -4.22 | -1.31% |
After the close of trading attention will turn to Fox News and Fox Business parent Fox Corporation, ride-hailing service Uber Technologies, life and health insurer MetLife, and online payments giant PayPal.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FOXA | FOX CORP. | 36.74 | +0.13 | +0.36% |
| UBER | UBER TECHNOLOGIES, INC. | 52.99 | -1.86 | -3.39% |
| PYPL | PAYPAL HOLDINGS, INC. | 250.16 | -8.93 | -3.45% |
| MET | METLIFE, INC. | 64.36 | +0.10 | +0.16% |
In Europe, London’s FTSE added 1.2%, Germany’s DAX gained 1.3% and France’s CAC rose 0.9%.
In Asia, the Hang Seng in Hong Kong lost 0.5%, while markets in China and Japan were closed for holidays.
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In energy markets, benchmark U.S. crude gained 72 cents to $66.41 per barrel. The contract rose $1.20 on Tuesday to $65.69 a barrel. Brent crude, used to price international oils, added 77 cents to $69.65 per barrel in London. It advanced $1.32 cents the previous session to $68.88 a barrel.
The Associated Press contributed to this report.
