By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures pointed to another
day in the red ahead of Wednesday's ADP jobs report, which could be
watched more closely than usual given the possibility of a June
Federal Reserve interest- rate hike.
The Nasdaq (RIXF) looked set to slip further below the
psychologically important 5,000 level reached on Monday, with
futures (NDH5) off 14 points, or 0.3%, to 4,442.50. Futures for the
Dow Jones Industrial Average (DJH5) lost 61 points, or 0.3%, to
18,125, while those for the S&P 500 index (SPH5) gave up 7.90
points, or 0.4%, to 2,096.90.
The losses came after a day in the red on Tuesday
(http://www.marketwatch.com/story/us-stocks-futures-retreat-after-nasdaq-breaks-above-5000-2015-03-03),
when disappointing monthly car sales dampened investors'
spirit.
Data: The big number today will be the ADP employment report.
The ADP figures showed 213,000 private-sector jobs were added to
the economy in January, and economists forecast 220,000 jobs to
have been created in February. The report comes out at 8:15 a.m.
Eastern Time.
The ADP reading will give an indication of the strength of the
labor market ahead of Friday's jobs report, a monthly highlight
that will also be eyed for clues to whether the Fed is likely to
pull the trigger on a rate increase in June.
"This Friday's release has gained extra significance as it is
the first such figure since Fed Chair Yellen highlighted the key
role job growth will play in any interest rate hike decision,"
Connor Campbell, financial analyst at Spreadex, said in a note
Wednesday.
The dollar strengthened ahead of the ADP report, with the ICE
dollar index (DXY) jumping to its highest level in more than 11
years
(http://www.marketwatch.com/story/dollar-climbs-to-11-year-high-ahead-of-jobs-data-ecb-2015-03-04).
At 10 a.m. Eastern, the ISM nonmanufacturing data for February
will be released. Economists polled by MarketWatch expect a slight
pullback to 55.9%, from 56.7% in January.
Fed speakers: Chicago Federal Reserve President Charles Evans,
who is a voting member this year, will speak on the economic
outlook and monetary policy to the Lake Forest-Lake Bluff Rotary
Club in Lake Forest, Ill. at 9 a.m. Eastern.
Kansas City Fed President Esther George, who is not a voting
member of the Fed this year, will give a speech on the economy in
Kansas City at 1 p.m. Eastern.
Dallas Fed President Richard Fisher, also not a voting member,
will reflect on 10 years at the Fed in El Paso, Texas at 7 p.m.
Eastern.
The Fed's beige book is schedule at 2 p.m.
Earnings: Reporting ahead of the bell, clothing retailer
Abercrombie & Fitch Co.(ANF) is projected to report
fourth-quarter earnings of $1.14 a share, according to a consensus
survey by FactSet.
Pet-supplies company PetSmart Inc. (PETM) is forecast to post
fourth-quarter earnings of $1.36 a share.
Spirits maker Brown-Forman Corp.(BFB) is predicted to report
fiscal third-quarter earnings of 86 cents a share.
Trina Solar Ltd.(TSL) gained 4.2% ahead of the market open after
the solar-panel manufacturer reported earnings ahead of
forecasts.
Movers and shakers: Warren Buffett was in the spotlight again
after news that Berkshire Hathaway Inc.(BRK/A) plans a debut
euro-bond sale
(http://www.marketwatch.com/story/warren-buffetts-berkshire-hathaway-plans-debut-euro-bond-sale-2015-03-04),
joining the craze for European bonds amid record low borrowing
cost. Last week, Coca-Cola Co. (KO) sold EUR8.5 billion ($9.45
billion) worth of European bonds
(http://www.marketwatch.com/story/coca-cola-sells-biggest-ever-us-offer-of-euro-bonds-2015-02-26),
the largest euro-denominated bond from an American firm on record
and the second-largest by any company in the currency.
Shares of Smith & Wesson Holding Corp.(SWB) surged 11% ahead
of the bell after earnings from the firearms manufacturer topped
Wall Street estimates
(http://www.marketwatch.com/story/smith-wesson-shares-rally-on-earnings-beat-outlook-2015-03-03).
Bob Evans Farms Inc.(BOBE) dived 20% after the restaurant chain
late Tuesday reported earnings below expectations
(http://www.marketwatch.com/story/bob-evans-reports-earnings-miss-2015-03-03)
and said it would not pursue a sale or spinoff of BEF Foods. Janney
Wednesday morning downgraded the company to neutral from buy.
Shares of Veeva Systems Inc.(VEEV) slumped 8.5% in premarket
trade after the cloud-software company late Tuesday reported
fourth-quarter earnings.
U.S. listed shares of Novogen Ltd.(NVGN) rocketed 61% premarket
after the Australian biotech said studies show one of its drugs can
kill brain-cancer cells.
Shares of Alibaba Group Holding Ltd.(BABA) nudged 0.8% lower
ahead of the bell, after taking outs its all-time low in Tuesday's
session before rebounding slightly at the close.
TiVo Inc.(TIVO) could also be active after reporting a surge in
surge in fourth-quarter profit late Tuesday.
Southwest Airlines Co. (LUV) was further in the spotlight after
projecting higher fuel costs for the first quarter.
Other markets: European stock markets struggled for direction
after a mixed bag of data, while most Asian markets closed in the
red (http://www.marketwatch.com/storyno-meta-for-guid). Oil futures
climbed (http://www.marketwatch.com/storyno-meta-for-guid) and
metals were lower across the board
(http://www.marketwatch.com/storyno-meta-for-guid).
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