Wall Street opens higher on stronger jobs data

US STOCK index futures rose yesterday after solid private employment data underscored the strength of the economy, helping to partially offset investors’ worries about President Donald Trump’s ability to deliver on his policy plans.

The ADP national employment report showed 263000 jobs were added in the US private sector last month, far more than economists’ expectation of 187 000. The report serves as a predecessor to a more comprehensive non-farm payrolls report, due tomorrow.

The gains in the index futures come in a week when US stocks have been trading in a tight range ahead of a highly anticipated meeting between Trump and Chinese President Xi Jinping.

The meeting, starting today and which Trump expects will be a “very difficult one”, is likely to focus on trade between the two countries and reining in North Korea’s arms programme. Also weighing on investors’ minds is Trump’s ability to deliver on tax reform and other pro-business promises after setbacks in pushing reforms through Congress.

“There is a growing lack of confidence in the administration and that is creating hesitation among investors,” said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

“There are a few uncertainties on earnings, the meeting on Friday with President Xi and the jobs data, which are raising some doubt today.”

Wall Street has rallied on Trump’s promises, with analysts saying the expectations of tax cuts have been priced in. The lofty market valuations will be in sharp focus with the first-quarter earnings season around the corner. Dow e-minis were up 48 points, or 0.23% at 8.31am, with 21409 contracts changing hands.

Standard & Poor’s 500 e-minis were up 4 points, or 0.17%, with 130135 contracts traded. Nasdaq 100 e-minis were up 1.5 points, or 0.03%, on volume of 22711 contracts. The Federal Reserve was due to release the minutes of its meeting last month, where it raised interest rates. The minutes could reveal how policymakers view the rate hike trajectory for the year and their thoughts on Trump’s policies.

Among the pre-market movers yesterday were shares of Panera Bread. The stock jumped 13.5% to $311.05 after JAB Holdings said it would buy the bakery chain for $7.16 billion. Walgreen Boots Alliance slipped 0.8% to $81.85 after the drugstore chain operator reported a surprise drop in quarterly sales.