U.S. Stocks Rise Ahead of Payroll Revisions and Fed Minutes

U.S. stock indexes rose on Wednesday, with investors cautious ahead of revisions to U.S. payroll data and the release of minutes from the Federal Reserve’s latest monetary policy meeting.

Wall Street indexes closed lower on Tuesday, ending an eight-day upward streak, despite recovering from weakness and volatility in early August.

Payroll revisions and Fed minutes in focus

Markets are trading cautiously as investors look for more signals about the Federal Reserve’s intentions for its September meeting.

The Bureau of Labor Statistics report on likely revisions to the latest nonfarm payroll data is due later in the session, and most economists expect a downward revision.

Goldman Sachs estimates that about 600,000 to 1 million fewer jobs were created between April 2023 and March 2024 than previously reported, although the influential investment bank noted the likelihood of a downward revision.

Minutes from the Fed’s July monetary policy meeting will also be released later today, ahead of Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday.

Although investors expect Powell to provide more dovish signals amid recent signs of cooling inflation, he is not expected to explicitly outline plans for an interest rate cut in September.

However, the Fed is widely expected to cut rates next month, with about a 67% chance of a 25 basis point cut and a 33% chance of a 50 basis point reduction, according to CME FedWatch.

Walmart plans to sell its stake in JD.com

The quarterly earnings season is winding down, although results from several high-profile retailers are still pending.

Target Corporation (TGT) and TJX Companies (TJX) will release their results later on Wednesday, and investors will be watching closely to see if they gain market share with back-to-school sales.

Elsewhere, shares of Chinese e-commerce company JD.com (JD) fell sharply before the market opened after Bloomberg reported that Walmart (WMT) was considering selling its stake in the company for about $3.7 billion.

Shares of Keysight Technologies (KEYS) rose after its earnings beat forecasts, while 3D Systems (DDD) lost value after reporting lower-than-expected earnings.

Shares of furniture maker La-Z-Boy Incorporated (LZB) fell as weaker-than-expected forecasts largely offset strong results.