ALSO READWall Street rises, lifted by technology and energy stocks Wall St lower as financials stocks weigh, oil drops Dow ends at record high, stocks lifted by tech, energy Correction - Dow ends at record high, stocks lifted by tech, energy U.S. crude oil stocks soar in biggest build on record - EIA
By Yashaswini Swamynathan
(Reuters) - The S&P 500 and the Dow looked set to open higher on Wednesday as oil prices soared on prospects of a big output cut by major producers.
Oil prices rose 7 percent to a near five-week high of $49.65. A source told Reuters that delegates were debating a bigger-than-expected cut in production at a meeting in Vienna.
Chevron's shares rose 1.98 percent premarket, while Exxon Mobil and Schlumberger were up more than 2.5 percent each.
Wall Street is on track for its best month since March, riding on a record rally that was sparked by Donald Trump's victory in the U.S. presidential election.
Investors expect the market to benefit from Trump's policies, including higher spending on infrastructure and simpler regulations in the healthcare and banking industries.
"We got a bounty of economic data today, but all of that probably takes a backseat in terms of our attention to oil," said Art Hogan, chief market strategist at Wunderlich Equity Capital Markets in New York.
The ADP National Employment report showed that 216,000 jobs were added in the U.S. private sector this month, far more than the 165,000 that economists had expected.
The report is seen as a precursor to the more comprehensive monthly jobs data due Friday that includes hiring in the private and public sectors.
Consumer spending, which accounts for about 70 percent of U.S. economic activity, increased 0.3 percent in October, according to a report by the Commerce Department.
Traders have priced in an 89 percent chance of the Fed raising interest rates at its meeting next month, according to Thomson Reuters data, and Friday's employment numbers will play a big role in the central bank's deliberations.
Dow e-minis were up 42 points, or 0.22 percent, at 8:34 a.m. ET, with 29,372 contracts changing hands.
S&P 500 e-minis were up 5 points, or 0.23 percent, with 150,935 contracts traded.
Nasdaq 100 e-minis were down 1 point, or 0.02 percent, with 19,159 contracts traded.
Fed Board Governor Jerome Powell is scheduled to speak in Washington, while Cleveland Fed president and voting member Loretta Mester is due to speak in Pittsburgh.
Splunk rose 7 percent to $61.40 after the data analytics provider forecast full-year revenue above analysts' expectations.
GoPro rose 3.3 percent after the wearable camera maker said it would cut 15 percent of its workforce and shut its entertainment business.
Teen apparel retailer American Eagle Outfitters dropped 10.6 percent to $16.88 after providing a disappointing profit forecast for the crucial holiday quarter.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)