By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures pointed to another
day in the red on Wednesday, with investors cautious ahead of the
ADP jobs report, which could be watched more closely than usual
with the possibility of a June Federal Reserve rate hike in
sight.
The Nasdaq (RIXF) looked set to slip further below the
psychologically important 5,000 level reached on Monday, with
futures (NDH5) off 12 points, or 0.3%, to 4,444.50. Futures for the
Dow Jones Industrial Average (DJH5) lost 53 points, or 0.3%, to
18,133, while those for the S&P 500 index (SPH5) gave up 6.20
points, or 0.3%, to 2,098.60.
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 nonfarm-payrolls numbers, 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, Il 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, Tx. 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.
Movers and shakers: Shares of Smith & Wesson Holding
Corp.(SWB) rallied 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).
Shares of Veeva Systems Inc.(VEEV) slumped 13% in premarket
trade after the cloud-software company late Tuesday reported
fourth-quarter earnings.
U.S. listed shares of Novogen Ltd.(NVGN) rocketed 38% after the
Australian biotech said studies show one of its drugs can kill
brain-cancer cells.
TiVo Inc.(TIVO) could also be active after reporting a surge in
surge in fourth-quarter profit late Tuesday.
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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