US stocks edge higher ahead of key payroll revisions, Fed minutes

Investing.com -- U.S. stocks traded with small gains Wednesday, with investors cautious ahead of the preliminary revisions to U.S. payrolls data and the release of minutes from the Federal Reserve's last policy meeting.

At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 90 points, or 0.2%, the S&P 500 index gained 12 points, or 0.2%, and the NASDAQ Composite rose 25 points, or 0.1%.  Payroll revisions, Fed minutes in spotlight 

Markets are trading in a cautious manner as investors look for clues over the Federal Reserve's intention at its next policy-meeting in September.

The report from the Bureau of Labor Statistics over potential revisions to the recent nonfarm payrolls data is due later in th session, and most economists expect a downwards revision.

Goldman Sachs forecast that 600,000 to 1 million fewer jobs were created from April 2023 to March 2024 than previously reported, although the influential investment bank stated that the likely downward revision "will exaggerate the degree to which payroll growth has been overstated."

"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.

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

But the Fed is still widely expected to cut rates next month, with markets pricing in a 67% chance for a 25 basis point cut and a 33% chance of a 50 bps reduction, according to CME Fedwatch . Target soars after raising its annual guidance 

The quarterly earnings season is drawing to a close, but results from a number of high-profile retailers are in the spotlight.

Target Corporation (NYSE:TGT ) stock rose 16% after the big box retailer raised its annual profit forecast and beat expectations for second-quarter comparable sales, with customers drawn in by low priced groceries and essentials.

Macy’s (NYSE:M ) stock, by contrast, fell 10% after the department store chain missed market expectations for quarterly revenue as lingering weakness in U.S. consumer spending hurt demand for big-ticket, non-essential goods.

Elsewhere, Chinese e-commerce firm JD.com (NASDAQ:JD ) stock slid over 7% after Bloomberg reported that Walmart (NYSE:WMT ) planned to sell its stake in the firm for about $3.7 billion. 

Keysight Technologies (NYSE:KEYS ) stock surged 12% after its earnings beat estimates, while 3D Systems (NYSE:DDD ) fell 5% after reporting weaker-than-expected earnings.

Furniture maker La-Z-Boy Incorporated (NYSE:LZB ) stock dropped around 5% as a weaker-than-expected guidance largely offset strong earnings. 

(Ambar Warrick contributed to this article.)

Source: Investing.com