The Federal Reserve is likely to show on Wednesday that it is ready to act to support a weakening economy but stop short of aggressive measures for now.

The S&P ۵۰۰ posted its biggest two - day percentage gain to close out last week on increased expectations both the Fed and the European Central Bank will plan further actions to stimulate their respective economies at meetings this week, but the index has stalled the last two sessions as it reached levels not seen since early May.

Automatic Data Processing releases its July employment report at ۸:۱۵ a. m. EDT(۱۲۱۵ GMT). Economists in a Reuters survey expect ۱۲۰,۰۰۰ jobs were created in July versus ۱۷۶,۰۰۰ in June.

At ۱۰ a. m., the Commerce Department releases June construction spending and the Institute for Supply Management releases its July manufacturing index. Economists in a Reuters survey forecast construction spending to rise ۰.۴ percent and a ۵۰.۲ ISM reading.

China ' s official factory purchasing managers ' index edged down to an eight - month low of ۵۰.۱ in July from ۵۰.۲ in June, suggesting the sector is barely growing, while a rival HSBC survey indicated the more market - sensitive private sector is starting to recover.

S&P ۵۰۰ futures rose ۳.۳ points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained ۵۷ points, and Nasdaq ۱۰۰ futures added ۸.۷۵ points.

MasterCard(MA. N), the world ' s second - largest credit and debit card processing network, is expected to post a higher second - quarter profit as more people across the globe use cards instead of cash. Other major companies announcing results include Metlife(MET. N), Prudential Financial Inc(PRU. N) and Tesoro Corp(TSO. N).

According to Thomson Reuters data through Tuesday morning, of the ۳۲۱ companies in the S&P ۵۰۰ that have reported second - quarter earnings to date, ۶۷.۳ percent have reported earnings above analysts ' expectations. Over the past four quarters, the average beat rate is ۶۸ percent.

European stocks rose early on Wednesday, helped by a string of better - than - feared corporate results ahead of policy decisions by the Fed and the ECB which some expect to result in bold action to support their economies. The FTSEurofirst ۳۰۰. FTEU۳ index of top European shares was up ۰.۲ percent.. EU

Asian shares fell on Wednesday as soft Chinese manufacturing data further undermined investor confidence and as hopes faded for bold stimulus action this week by the Fed and the ECB to underpin faltering economies.