By Peter Nurse
Investing.com - U.S. stocks are seen opening mixed Wednesday in cautious trading, with President Joe Biden set to unveil his infrastructure plan and ahead of the release of closely-watched employment data.
At 7 AM ET (1200 GMT), the Dow Futures contract was down 45 points, or 0.1%, while S&P 500 Futures traded 3 points, or 0.1%, higher and Nasdaq 100 Futures climbed 75 points, or 0.6%.
The blue-chip Dow Jones Industrial Average and the broad-based S&P 500 index have both had good months, gaining almost 7% and 5% respectively, on expectations of a broad economic recovery helped by substantial fiscal and monetary stimuli and a strong Covid-19 vaccine rollout.
The tech-heavy Nasdaq Composite index has had less success, gaining just over 2% while being pressured by rising interest rates. The benchmark U.S. 10-year Treasury yield notched a 14-month high of 1.77% on Tuesday, although this has slipped by to 1.73%.
Investors are awaiting details on President Joe Biden’s plan to revitalize U.S. infrastructure later Wednesday, including the size of the total package and what measures will be taken to fund it.
Ahead of this the ADP Research Institute releases its report on private payrolls for March at 8:15 AM ET (1215 GMT). The number will likely show a significant pickup in hiring as lockdowns ease and weather improves, with expectations for a gain of 550,000, a significant jump from February’s 171,000 increase. This will act as a curtain raiser for Friday's official employment report for March.
In corporate news, Walgreens Boots Alliance (NASDAQ:WBA) reports results for the first time under new CEO Rosalind Brewer, while the likes of Lululemon Athletica (NASDAQ:LULU) and Chewy (NYSE:CHWY) will also be in focus after they reported earnings after the bell on Tuesday.
Pfizer (NYSE:PFE) will also be in the spotlight after the U.S. drugmaker announced that its coronavirus vaccine was 100% effective in preventing Covid-19 in kids aged 12 to 15 after a late stage clinical trial.
Oil prices slipped Wednesday ahead of Thursday’s meeting of the Organization of Petroleum Exporting Countries and its allies, a grouping known as OPEC+, which is set to decide production levels into May.
Market consensus is now looking for no change in output levels, despite many of the producers champing at the bit to raise additional revenue on the back of the rally in prices this year.
Data from the American Petroleum Institute industry group on Tuesday showed U.S. crude oil stocks rose by 3.9 million barrels in the week to March 26, well above expectations. The Energy Information Administration will release its equivalent figures later Wednesday.
U.S. crude futures traded 0.1% lower at $60.50 a barrel, while the Brent contract fell 0.1% to $64.10.
Elsewhere, gold futures rose 0.1% to $1,687.50/oz, while EUR/USD traded 0.12% higher at 1.1736.