U.S. stock futures rise on optimism of big OPEC output cut

[November 30, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures edged up on Wednesday as oil prices soared on optimism of a bigger-than-expected output cut.

Oil prices jumped 8.4 percent after Saudi Arabia's energy minister said the OPEC and other producers, gathered in Vienna, were close to a deal. [O/R]

Exxon Mobil's <XOM.N> shares rose 1.8 percent premarket, while Chevron <CVX.N> and Schlumberger <SLB.N> were up more than 2.3 percent.

Wall Street is on track for its best month since March, riding on a record rally that was sparked by Donald Trump's victory of the U.S. presidential election.

Investors expect the market to benefit from Trump's policies, including higher spending on infrastructure and simpler regulations in the healthcare and banking industries.

Economic data on tap includes the ADP National Employment report, which is expected to show 165,000 U.S. jobs were added in the private sector this month. The report, which is due at 8:15 a.m. ET, is seen as a precursor to the monthly jobs data due Friday.

A U.S. Commerce Department report at 8:30 a.m. ET is likely to show that consumer spending was flat at 0.5 percent last month, while core personal consumption expenditure rose 0.1 percent.

Traders have priced in an 89 percent chance of the Fed raising interest rates at its meeting next month, according to Thomson Reuters data, and Friday's employment numbers are going to be a key factor in the central bank's deliberations.

Fed Board Governor Jerome Powell is scheduled to speak in Washington on Wednesday. Cleveland Fed President and voting member Loretta Mester is due to speak in Pittsburgh.

A specialist trader works at his post on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. November 23, 2016. REUTERS/Brendan McDermid

U.S. stocks ended with slight gains on Tuesday as a surge in health stocks managed to limit the drag from energy shares.

Shares of Arrowhead Pharmaceuticals <ARWR.O> plunged 62 percent to $1.66 after the gene therapy developer said it would discontinue the development of some of its clinical-stage drug trials.

Costamare <CMRE.N> fell 13.7 percent after the marine transportation services provider said it would sell 12 million shares at a discount.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)

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