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U.S. stock-index futures on Wednesday headed lower, with investors attributing the declines at least partly to a failure of the first presidential election debate to provide any substance on policy or calm fears of a contested outcome.
Wall Street however may glean insights about the current state of the economy with a bevy of data ahead, including a private-sector reading of the labor market during the session.
How are stock benchmarks performing?
Futures for the Dow Jones Industrial Average YMZ20, -0.70% YMZ20, -0.70% were trading 174 points, or 0.6%, lower at 27,234; those for the S&P 500 index ESZ20, -0.59% were retreating 0.5% at 3,316.75, down 17.20 points. The Nasdaq-100 index NQZ20, -0.68% was giving up 68.50 points to reach 11,268.75, a decline of 0.6%.
On Tuesday, all three of the equity indexes snapped a three-session string of wins. The Dow DJIA, -0.47% fell 131.40 points, or 0.5%, to end at 27,452.66; while the S&P 500 index SPX, -0.48% closed 16.13 points, or 0.5%, lower at 3,335.47, and Nasdaq Composite Index COMP, -0.29% slipped 32.28 points, or 0.3%, finishing at 11,085.25. All three major equity indexes snapped three sessions of gains.
What’s driving the market?
The first presidential debate late Wednesday night, part of a three-debate series, between President Donald Trump and Democratic challenger former Vice President Joe Biden did little to alter the trajectory of the race for the White House or to offer clear guidance for market participants on policy.
“ It was an acrimonious, chaotic and insulting debate.,” wrote Naeem Aslam, analyst at AvaTrade in a note.
Aslam said that the rancor and testiness displayed during the heated 90-minute clash at Case Western University in Cleveland may signify the growing possibility of an uncertain outcome in the Nov. 3 contest, which could roil markets in the short term.
“The presidential debate reinforced the market concerns that Trump isn’t going to accept his defeat that easily,” the AvaTrade analysts wrote. “This creates the biggest risk for not only the U.S. stock market rally but we are seeing the global stock market taking a nose dive today,” he said.
Both candidates suggested that the presidency may not be decided on Election Day.
Beyond the politics, investors will watch for the latest data on the jobs market from Automatic Data Processing. Estimates are for 650,000 private-sector jobs to have been created in September, according to consensus estimates from economists polled by Econoday. Last month, the ADP data showed that 480,000 jobs were created in August.
The ADP report, due at 8:15 a.m. Eastern, also comes ahead of the more closely followed nonfarm-payrolls report set to be released on Friday, with 800,000 jobs estimated for September and the unemployment rate slipping to 8.2% from 8.4%.
Looking further ahead, investors will also get a third estimate of second quarter gross domestic product at 8:30 a.m., a reading of manufacturing activity in the Chicago area at 9:45 a.m., a report on pending home sales will be released 10 a.m.
Which stocks are in focus?
- Palantir Technologies Inc. PLTR, is set to make its public debut, via a direct listing, on the New York Stock Exchange.
- Duke Energy DUK, -0.55% was in focus after The Wall Street Journal reported that NextEra Energy NEE, -0.35% recently made a takeover approach.
- Walt Disney DIS, -0.46% shares were being watched closely after the entertainment giant said on Tuesday that it plans to lay off about 28,000 employees at its domestic theme parks.
- Regeneron Pharmaceuticals REGN, +0.29% said on Tuesday that its experimental COVID-19 drug helped reduce virus levels and improve symptoms in sick patients who weren’t hospitalized.
- Moderna MRNA, -0.04% said a small study showed in early-stage testing that its coronavirus vaccine can generate neutralizing antibodies in older and elderly adults
