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 12 points, or 0.3%, to 4,444.50. Futures for the
Dow Jones Industrial Average (DJH5) lost 51 points, or 0.3%, to
18,135, while those for the S&P 500 index (SPH5) gave up 6.90
points, or 0.3%, to 2,097.90.
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 [Janet] 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: Clothing retailer Abercrombie & Fitch Co.(ANF)
dropped 3.1% premarket after reporting fourth-quarter sales below
expectations.
Pet-supplies company PetSmart Inc. (PETM) is forecast to post
fourth-quarter earnings of $1.36 a share. The stock was up 1.3%
ahead of the report.
Trina Solar Ltd.(TSL) initially rose premarket after the
solar-panel manufacturer reported earnings ahead of forecasts, but
the stock has since reversed to a 0.2% loss.
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 22% 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 12% in premarket
trade after the cloud-software company late Tuesday reported
fourth-quarter earnings.
U.S. listed shares of Novogen Ltd.(NVGN) rocketed 48% 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 1% lower ahead
of the bell after the online marketplace said it is buying a $382
million stake
(http://www.marketwatch.com/story/alibaba-buys-stake-in-china-entertainment-company-enlight-media-2015-03-04)
in Chinese production company Beijing Enlight Media Co. On Tuesday,
the stock took out its all-time low before rebounding slightly at
the close.
Honeywell International Inc.(HON) added 1%. The diversified
aerospace and industrial company reaffirmed its earnings outlook
(http://www.marketwatch.com/story/honeywell-affirms-profit-outlook-for-2015-2015-03-04)
for the first quarter and full year.
TiVo Inc.(TIVO) rallied 6.7% after reporting a surge in surge in
fourth-quarter profit late Tuesday.
Southwest Airlines Co. (LUV) was in the spotlight after
projecting higher fuel costs
(http://www.marketwatch.com/story/southwest-airlines-predicts-higher-fuel-costs-in-first-quarter-2015-03-04)
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 mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid).
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