After turning in a lackluster performance in the previous session, stocks may show a notable move to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 87 points.
The futures have held on to earlier gains following the release of a report from payroll processor Automatic Data Processing, Inc. (ADP) showing a continued increase in private sector employment in the month of January.
ADP said employment in the non-farm private business sector rose by 170,000 jobs in January following a revised increase of 292,000 jobs in December.
Economists had expected employment to increase by about 172,000 jobs compared to the addition of 325,000 jobs originally reported for the previous month.
Peter Boockvar, equity strategist at Miller Tabak, said, "Bottom line, the 170,000 figure compares to the 2011 monthly average of 160,000 and thus points to a continued recovery, but the mediocre pace this far into a recovery still remains frustrating."
Positive sentiment has also been generated by a report showing that the German manufacturing sector expanded for the first time in four months in January.
Not long after the open, trading could be impacted by the release of the Institute for Supply Management's report on U.S. manufacturing activity in the month of January. The index of activity in the sector is expected to edge up to 54.5 from 53.9, with a reading above 50 indicating growth.
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