NEW YORK (MarketWatch) -- U.S. stock futures rose sharply to start the new year on Wednesday, as investors cheered strong sales data from Wal-Mart over the weekend and the resignation of the embattled chairman and chief executive of Home Depot.
Investors will all get a heavy dose of economic data, monthly auto sales and a key manufacturing gauge, as well as minutes from the last Federal Reserve interest-rate meeting.
S&P 500 futures ran up 7.00 points to 1,435.40 and Nasdaq 100 futures climbed 15.75 points at 1,790.75. Dow industrial futures hiked up 66 points to 12,605.
On Friday, the Dow Jones Industrials Average ($INDU) closed down 38 points, but rose more than 16% on the year. The S&P 500 ($SPX) gained nearly 14% and the Nasdaq Composite ($COMPQ) climbed 9.5%
While U.S. markets were closed on Tuesday, stock markets in Europe and Asia climbed. In Wednesday trading, the FTSE 100 in London edged 0.1% lower after a 1.5% rise the previous session. Japanese stock markets are still shut.
As a prelude to important jobs data due out on Friday, the ADP employment report said U.S. private-sector employment fell by 40,000 in December, the first decline in nearly four years. The data suggest nonfarm payrolls could decline by about 25,000 on the month, while the average economist estimate compiled by MarketWatch called for a gain of about 103,000 jobs.
The report sent bonds higher, and yields lower. The benchmark 10-year Treasury note's yield ($TNX) fell 0.064 percentage points to 4.646%
After rising on Tuesday, the euro slipped back against the U.S. dollar. The dollar also rose on the Japanese yen.
Wednesday's economic calendar also includes the Institute of Supply Management's manufacturing survey for December, which may return to a 50% reading, according to some forecasts. Last month the survey fell to a reading of 49.5%, which signaled economic contraction in the sector. The ISM data is due for release at 10 a.m. Eastern.
Data on construction spending is also due, as are U.S. auto sales, with the auto figures expected to show that Toyota Motor (TM) is getting ever closer to topping General Motors (GM) as the sales leader. Ford Motor Co. (F) may fall to the four spot behind GM, Toyota and DaimlerChrysler (DCX).
Minutes from the last Fed meeting will be released at 2 p.m. Eastern.
In other markets, crude oil futures slipped 65 cents at $60.40 a barrel in electronic trading, on milder-than-normal weather, while gold futures ticked up $1.20 to $639.20
In corporate news, Wal-Mart (WMT) said over the weekend that December same-store sales were expected to be up 1.6% over year-earlier levels, well above the company's previous estimate of a 1% gain. The stock rallied 2.1% to $47.14 ahead of the open.
Fellow Dow member Home Depot (HD) said its chairman and chief executive, Robert Nardelli, resigned effective Jan. 2 amid criticism over his rich pay package, which critics said did not match company performance. Home Depot and Nardelli agreed to a $210 million separation package. He will be succeeded by Frank Blake, who was the vice chairman.
Earlier, the home improvement retailer was upgraded to strong buy from outperform at Raymond James, which cited fading management issues and given that the worst appears to have passed for the housing market. The stock shot up 4.4% to $41.92 in pre-open trading.
Elsewhere, home builder Lennar Corp. (LEN) warned of a fourth-quarter loss and added a partner to its LandSource joint venture.
The stock shed 3% to $50.87 in the pre-open.
In other analyst moves, Dow component General Motors (GM) was downgraded to sell from neutral at Banc of America Sec., which cited concerns over a sharp decline in product volume resulting from lower market share.
Also in the Dow, Merck (MRK) was upgraded to outperform from peer perform at Bear Stearns, which said it expects upside to several new products as consensus forecasts appear to be underestimating performance. The stock tacked on 1.6% to $44.29 in pre-open trading.
Amazon.com shares (AMZN) fell 1.5% to $38.88 after Citigroup downgraded the online retailer to sell from hold, citing concerns over valuation and margin expansion.
Tomi Kilgore is a reporter for MarketWatch in New York. Steve Goldstein is MarketWatch's London bureau chief.
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