US stocks seen mixed at start on Wednesday as traders await the ADP private-sector jobs data

7.45am: Dow, S&P seen lower, Nasdaq higher US markets are expected to make a mixed start on Wednesday as traders await the ADP private-sector jobs data ahead of the all-important non-farm payrolls on Friday. Spread-betters are predicting the Dow Jones Industrial Average will open around 53 points lower, while the S&P 500 is expected to shed 4.5 points. The Nasdaq Composite, however, is predicted to be the positive outlier with a gain of 9 points. The ADP report is expected to show that the US private sector added around 700,000 new jobs in July, around the same as the previous month, although some analysts have cautioned the actual figure could be widely different. “The latest US jobs data will give an indication on how fast the US labour market is progressing towards the Fed’s policy goal, and how close we are to the ‘substantial’ progress that the Fed pursues to trigger the most-apprehended tapering of its massive bond buying program,” said Ipek Ozkardeskaya, senior analyst at Swissquote. “A read below 500,000 should throw the mood off the cliff, as there is not much to awaken the Fed doves with inflation hovering above the 5% mark. A strong read, on the other hand, should accelerate the thinking that the Fed will get to the tapering stage quicker than otherwise. That could apply a certain pressure on the US stocks, but it’s always better to walk towards an inevitable policy tightening with a set of strong economic data than the contrary,” she added. Meanwhile, traders will likely be keeping an eye on shares in CVS Health Corp after the pharmacy chain reported second-quarter earnings that beat estimates while also raising its forward guidance. And troubled synthetic biology firm Zymergen will also be in focus after the group warned revenue is expected to be immaterial in 2022 and that its CEO will be stepping down. The stock has already plunged 73% to US$9.34 in pre-market deals. Five other things to watch on Wednesday: General Motors Co. swung to a second-quarter profit from a loss last year when the coronavirus (COVID-19) pandemic shut operations and raised its full-year forecast despite an $800 million hit from the recalls of the Chevrolet Bolt electric vehicle. Japanese car manufacturer Toyota Motor Corp posted record quarterly earnings and rival Honda Motor Co raised its annual profit forecast as post-lockdown sales surge, but the pair joined other automakers in warning that the global chip shortage would persist. Kraft Heinz Co. beat market estimates for quarterly net sales and profit as demand for snacks and packaged meals remained strong even as people started venturing out following the easing of coronavirus restrictions. The New York Times Co, reported better-than-expected quarterly revenue driven by strong advertising demand and a rise in digital subscriptions. Sony Corp raised its earnings outlook after a record first-quarter operating profit helped by pandemic stay-at-home demand for PlayStation 5 consoles, TVs, music and movies.