Wall Street looks poised for a higher open this morning as political tensions in Europe ease, with the S&P 500 futures currently trading 11 points, or 0.4%, above fair value.
The S&P 500 is on the doorstep of record territory, while the Dow Jones Industrial Average will be looking to extend its new all-time high, which it notched on Tuesday.
After playing hardball yesterday, it appears that the Italian government has given in to some of EU regulators' demands, with reports indicating that Italy will cut its budget-deficit target for 2020 and 2021 to 2.2% of GDP and to 2.0% of GDP, respectively. The previous plan, which was announced on Friday, was to have a budget-deficit target of 2.4% for the next three years.
Back on the home front, the ADP Employment Change report for September showed an estimated 230,000 positions were added to private sector payrolls. That was well above the Briefing.com consensus estimate of 184,000 and exceeded the prior month's upwardly revised increase of 168,000 (from 163,000).
The job gains were nicely distributed by company size, with small companies adding 56,000, midsized companies creating 99,000 jobs, and large companies adding 75,000 positions. The goods-producing sector accounted for 46,000 new jobs while the service-providing sector accounted for 184,000 positions.
The ADP Employment Change Report is a prelude to Friday's nonfarm payrolls reading. Given today's positive surprise, economists might be inclined to raise their estimates for the nonfarm payrolls number. The current Briefing.com consensus estimate for nonfarm payrolls is 184,000.
Separately, investors will receive the September ISM Services Index (Briefing.com consensus 58.2; prior 58.5) at 10:00 AM ET.
Looking at other markets, U.S. Treasuries are slightly lower this morning, pushing yields a few ticks higher across the curve, with the benchmark 10-yr yield up two basis points at 3.08%. Meanwhile, WTI crude futures continue to hover near a four-year high, up 0.1% at $75.32/bbl.
In U.S. corporate news, Lennar (LEN) is up 0.8% after reporting better-than-expected earnings and struggling retailer J.C. Penney (JCP) is up 10.3% after appointing Jill Soltau as CEO. Ms. Soltau recently served as President and CEO of Joann Stores.