U.S. Stock Futures Maintain Gains After ADP Reports Job Growth
U.S. stock-index futures maintained gains after ADP Employer Services said American companies added 91,000 jobs last month.
The median forecast of economists surveyed by Bloomberg News called for ADP to report a gain of 100,000 jobs. Over the previous six reports, ADP’s initial figure was closest to the Labor Department’s first estimate of private payrolls in February, when it understated the gain in jobs by 5,000. The estimate was least accurate in June, when it overestimated the increase in employment by 100,000.
The S&P 500 has rallied 4.6 percent over the last three days as Federal Reserve Chairman Ben S. Bernanke told the central bank’s yearly gathering in Jackson Hole, Wyoming, that the Fed was prepared to do more to foster a stronger recovery. That pared the index’s decline in August to 6.1 percent, its largest monthly slump since May 2010.
The S&P 500 rose 0.2 percent yesterday after the Federal Open Market Committee disclosed minutes from its latest meeting, showing that several members favored a “more substantial move” beyond the pledge adopted by the panel to hold interest rates at record lows for the next two years.
A U.S. Commerce Department report due at 10 a.m. in Washington will show that factory orders rose 2 percent in July after a 0.8 percent decline in June, according to a Bloomberg survey of economists.
Futures extended gains earlier as German Chancellor Angela Merkel’s Cabinet ratified expanded measures to combat the euro- area’s sovereign-debt crisis. Ministers meeting in Berlin today backed a reworked European Financial Stability Facility with sovereign bond-buying powers, raising Germany’s share of EFSF loan guarantees to 211 billion euros ($305 billion) from 123 billion euros. European leaders agreed to introduce the measures at a summit on July 21.
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