Wall Street set to open up on strong ADP jJobs Data

Wall Street was set to open higher after data showed that the U.S. private sector added more jobs than expected in May and the European Central Bank left interest rates unchanged at record lows.

U.S. private employers added 201,000 jobs last month, a report by a payrolls processor ADP showed, higher than the 165,000 additions in April and economists’ estimate of a gain of 200,000 for May.

The data is a precursor to the U.S. Labor Department’s non-farm payrolls report on Friday, which includes both public and private-sector employment numbers.

“There was nothing disturbing in the numbers,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

“The number is strong enough to create some sensitivity around the timing of a rate hike in the second half of the year.”

The ECB’s decision to leave rates unchanged was widely expected after the central bank cut rates to rock-bottom levels last September and said they had hit “the lower bound”.

U.S. trade deficit narrowed 26.6 percent in April, the largest decrease since early 2009, as exports of services hit a record high and imports fell.

Investors have been keeping a keen eye on economic data for clues on the timing of a rate hike by the U.S. Federal Reserve – the first in nearly a decade.

Also due on Wednesday is the Institute for Supply Management’s non-manufacturing index for May at 10:00 a.m. ET (1400 GMT).

At 8:56 a.m. ET, S&P 500 e-minis ESc1 were up 7.75 points, or 0.37 percent, with 190,056 contracts traded. Nasdaq 100 e-minis NQc1 were up 30.25 points, or 0.67 percent, on volume of 33,723 contracts, while Dow e-minis 1YMc1 were up 79 points, or 0.44 percent, with 29,976 contracts changing hands.

Synchronoss Technologies’ (SNCR.O) shares jumped 18.5 percent to $50.40 in premarket trading after the Wall Street Journal reported that the software maker was working on a possible sale that could be valued at more than $2 billion.

Vera Bradley (VRA.O) slumped 13 percent to $12.30 after the handbag maker posted a quarterly loss and said it was not attracting enough new customers.

Wendy’s (WEN.O) rose 2.5 percent to $11.38 after the hamburger chain said it would buy back $1.4 billion of shares by the end of 2016, including $211 million from Nelson Peltz’s Trian Group, its largest shareholder.

GoPro (GPRO.O) was up 3.3 percent at $60.30 after J.P. Morgan raised its price target on the wearable camera maker’s stock.

Source: Reuters