U.S. stock futures were trading marginally lower ahead of Wednesday’s open after a string of record-setting days, weighed down by a weaker dollar and losses across Europe. Selling pressure has been mitigated, however, by reports that Fed governor Jerome Powell, one of the staunchest doves on the Fed board, is favored by President Trump to replace Janet Yellen when her term as Fed Chair expires in February.
Stocks remained defensive following private payroll data that indicated employers in the private sector added just 135,000 jobs in September, a much slower pace than the revised 228,000 number of jobs created in August.
Later this morning, Wall Street will get a look at activity in the services sector of the economy with the final September purchasing managers index (expected 55.2), and the Institute for Supply Management non-manufacturing index (expected 55.5).
In other news, the banking sector is losing ground in reaction to President Trump’s remarks calling on Wall Street to forgive Puerto Rico’s $70 billion public debt. During an interview Tuesday, the president said the island’s debt will have to be “wiped out…owing a lot of money to Wall Street.” Shares of Goldman Sachs (GS), JP Morgan (JPM) and Citigroup (C), are all trading lower.