U.S. stock futures edge up after report of employment growth

By Daniel | July 30, 2008

U.S. stock futures edge higher after ADP report

By Steve Goldstein, MarketWatch

Last Update: 7/30/2008 8:21:00 AM

LONDON (MarketWatch) — U.S. stock futures edged higher on Wednesday after a
herky-jerky start to the week, helped by a surprise increase in an estimate of
U.S. employment.

S&P 500 futures rose 4 points to 1,265.70 and Nasdaq 100 futures added 13.25
points to 1,855.25. Dow industrial futures rose 38 points.

U.S. stocks were as strong Tuesday as they were weak on Monday, with financials
jumping after Merrill Lynch’s latest fund raising plan and its move to sell over
$30 billion in mortgage assets at 22 cents on the dollar. A decline in oil prices
also helped stocks. The Dow industrials rose 266 points, the S&P 500 rose 28
points and the Nasdaq Composite added 55 points.

Wednesday’s economic calendar featured the ADP estimate of July payrolls, which
indicated a 9,000 improvement in private-sector jobs.

That said, the ADP hasn’t been terribly accurate in gauging the numbers from the
government, which are due out on Friday.

The dollar pared losses and bonds fell after the ADP numbers.

The Securities and Exchange Commission late on Tuesday extended rules forbidding
short-selling on 17 Wall Street firms as well as housing giants Fannie Mae (FNM)
and Freddie Mac (FRE) by two weeks.

Ahead of weekly energy inventories numbers, due out 10:30 a.m. Eastern, crude
futures rose 4 cents to $122.23 a barrel. Gold futures dropped nearly $9 an
ounce.

Another series of earnings reports were released. Navigation device maker Garmin
(GRMN) dropped 14% after cutting its 2008 outlook on the weak economy.

Corning (GLW) fell 5% after giving a cautious outlook on third-quarter sales.

A day after U.S. Steel’s (X) surprisingly strong results, the world’s top
steelmaker, ArcelorMittal (MT), said its second-quarter profit more than doubled
and issued an upbeat outlook for the third quarter.

Elan (ELN) tumbled 32% in pre-open trade and Wyeth (WYE) dropped 7% as the
drugmakers said a Phase II study of an Alzheimer’s disease drug didn’t generate
statistically significant results.

After the close, Walt Disney (DIS) and Starbucks (SBUX) report quarterly results.

Overseas, the Nikkei 225 climbed 1.6% in Tokyo and the FTSE 100 rose 1.3% in
London.

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