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Futures: Dow up 0.13%, S&P 500 up 0.04%, Nasdaq down 0.04%
Aug 21 (Reuters) - U.S. stock index futures were largely
flat on Wednesday, as investors remained on the sidelines ahead
of the preliminary revisions to U.S. payrolls data and the
release of minutes from the Federal Reserve's last policy
meeting.
The report from the Bureau of Labor Statistics is due at
10:00 a.m. ET. Most economists expect a downwards revision, with
Goldman Sachs expecting that 600,000 to 1 million fewer jobs
were created from April 2023 to March 2024.
"A stronger number would also not change much to the Federal
Reserve's easing trajectory as the latest job data is already
hinting at a cooling labour market," strategists at ING wrote in
a morning note.
Minutes from the Fed's July policy meeting are also due
later in the day, ahead of Chair Jerome Powell's speech at the
economic symposium at Jackson Hole on Friday.
"We expect the Fed chairman to continue to signal that a
first rate cut is on the cards for September. Yet there is a
chance that investors could be disappointed by the comments, if
there are any references to the stickiness of inflation," said
Guy Stear, head of developed markets strategy at the Amundi
Investment Institute.
Financial markets are currently pricing in a 69.5%
likelihood of a 25 basis-points interest rate cut by the Fed in
September, with a 30.5% chance of a super-sized 50 bps cut,
according to CME's FedWatch tool.
Fed Governor Michelle Bowman on Tuesday said she remains
cautious about any shift in central bank policy as she sees
continued upside risks for inflation, warning that overreacting
to any single data point could put progress made against
inflation at risk.
At 05:10 a.m. ET, Dow E-minis were up 53 points, or
0.13% and S&P 500 E-minis were up 2.25 points, or 0.04%,
while Nasdaq 100 E-minis were down 7.75 points, or
0.04%.
Wall Street's main indexes closed marginally lower on
Monday, breaking their recent winning streak.
Risk appetite had returned to global equities last week
following sharp declines earlier this month, boosted by the
likelihood of rate cuts from the U.S. central bank in September,
with all three major U.S. benchmarks now at levels seen before
the sell-off.
Among individual stocks, second quarter earnings from retail
major Target ( TGT ) are due before the opening bell.
U.S.-listed shares of Chinese e-commerce firm JD.com ( JD )
dropped 7.7% in premarket trading after Reuters
reported that Walmart ( WMT ), the company's biggest
shareholder, has sold its entire stake in the firm.
Keysight Technologies ( KEYS ) gained 11.1% after the
electronic equipment maker beat third-quarter revenue and profit
estimates.
Overall, U.S. stock trading volumes have been light this
month as many investors are away for summer break.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Varun H
K)