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The Institute of Supply Management's data, due at 10 a.m. ET, is
expected to show its index for non-manufacturing activity
slipped to 53.5 last month from 55.3 in June, the fourth
straight monthly decline. The services sector accounts for more
than two-thirds of U.S. economic activity.
Wall Street started August on a sour note after data earlier on
Monday showed factory activity across the United States, China
and Eurozone weakened in July, while U.S. House of
Representatives Speaker Nancy Pelosi's visit to Taiwan sparked
concerns about escalating tensions between the United States and
China.
Pelosi left Taiwan on Wednesday after pledging solidarity and
hailing its democracy.
Meanwhile, a trio of Federal Reserve officials from across the
policy spectrum signaled on Tuesday that the U.S. central bank
remains open on aggressively increasing rates to tame
decades-high inflation.
A largely upbeat second-quarter earnings season has helped
markets bounce back recently. The benchmark S&P 500 index and
tech-heavy Nasdaq are up 12.4% and 16.9%, respectively, from
lows hit in mid-June.
At 6:46 a.m. ET, Dow e-minis were up 112 points, or 0.35%, S&P
500 e-minis were up 13.5 points, or 0.33%, and Nasdaq 100
e-minis were up 37.75 points, or 0.29%.
PayPal Holdings climbed 11.7% in premarket trading after it
raised its annual profit guidance and said activist investor
Elliott Management has an over $2 billion stake in the fintech
company.
CVS Health Corp rose 2.1% as the largest U.S. pharmacy chain
raised its full-year profit forecast after strength in its
insurance business and sales of COVID-19 over-the-counter test
kits helped the company report a 6% jump in second-quarter
earnings.
Starbucks Corp gained 1.9% after the coffee chain posted upbeat
quarterly profit aided by higher prices and strong demand for
its coffees in the United States.
Advanced Micro Devices Inc slid 5.4% after the chip designer
forecast third-quarter revenue slightly below Wall Street
estimates.
Shares of vacation rental company Airbnb Inc dipped 7.2% after
it forecast bookings for the current quarter at par with the
record-breaking previous one, disappointing investors.
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru;
Editing by Sriraj Kalluvila)
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