Futures rise on optimism around easing of lockdowns

By Shreyashi Sanyal

(Reuters) – U.S. stock index futures rose on Wednesday as investors turned hopeful of a pickup in business activity with several countries and U.S. states relaxing coronavirus-induced curbs.

After plunging to 2016-lows in March as the sweeping lockdown measures crushed supply chains and consumer demand, the benchmark S&P 500 rebounded strongly in April on unprecedented stimulus and signs the outbreak was peaking.

But with data still foreshadowing a severe economic slump and millions of Americans out of work, analysts have warned of another selloff, particularly if reopening economies sparks another wave of infections.

The ADP National Employment Report is expected to provide a first glimpse of hit to the labor market later on Wednesday, followed by the more comprehensive nonfarm payroll data due on Friday.

In early premarket trading, Activision Blizzard , rose 4.6% after raising its revenue forecast on higher demand for video games such as its “Call of Duty” to shake off lockdown boredom in the past two months.

Walt Disney Co , on the other hand, fell 1.5% after estimating that global measures to contain the coronavirus cut its profits by $1.4 billion, mostly from its shuttered theme parks.

At 6:24 a.m. ET, Dow e-minis were up 201 points, or 0.85%. S&P 500 e-minis were up 24 points, or 0.84% and Nasdaq 100 e-minis were up 72.25 points, or 0.81%.

SPDR S&P 500 ETFs were up 0.8%.

The S&P 500 index <.spx> closed up 0.9% at 2,868.44 on Monday.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D’Silva)