By Anora Mahmudova and Sara Sjolin, MarketWatch
Private sector adds 212,000 jobs in February, ADP says
NEW YORK (MarketWatch) -- U.S. stock futures were lower on
Wednesday and pointed to another day in the red as a report from
Automated Data Processing Inc. showed the private sector added
212,000 jobs in February.
The headline number came in below expectations; however, the
January number was revised sharply upward. Market reaction to the
data was muted and were off the day's lows.
Investors watch the ADP report to get a feeling for the official
jobs report due on Friday, which might give more clarity about the
Federal Reserve's resolve to hike interest rates this year.
The Nasdaq (RIXF) looked set to slip further below the
psychologically important 5,000 level reached on Monday, with
Nasdaq 100 futures (NDH5) off 10 points, or 0.2%, to 4,442.00.
Futures for the Dow Jones Industrial Average (DJH5) lost 44 points,
or 0.2%, to 18,142, while those for the S&P 500 index (SPH5)
gave up 5.90 points, or 0.3%, to 2,098.90.
John Canally, chief economic strategist at LPL Financial, said
the fact that the labor market continued to add more than 200,000
jobs despite bad weather in the East Coast, port closures in the
West Coast and slashed capital spending in the energy industry
speaks to the strength of the economy.
"The headline number was below expectations, but with revisions
for January, it was still a good report. Jobs numbers would have to
be a lot weaker than that for the Fed to delay rate hikes this
year," Canally said.
Data: Private-sector employment gains continued in February but
at a slower pace than in the prior month. ADP reported employers
added 212,000 jobs last month
(http://www.marketwatch.com/story/private-sector-adds-212000-jobs-in-february-adp-2015-03-04-8912123),
below January's revised gain of 250,000.
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.
Movers and shakers: Clothing retailer Abercrombie & Fitch
Co.(ANF) dropped 6.4% premarket after reporting fourth-quarter
sales below expectations.
American Eagle Outfitters Inc. (AEO) jumped 9.3% after posting
better-than-expected fourth-quarter profits
(http://www.marketwatch.com/story/american-eagle-shares-surge-10-as-profit-revenue-beat-2015-03-04)
and revenues and offered a upbeat outlook for the year at the teen
retailer.
Shares of Smith & Wesson Holding Corp.(SWB) surged 10% 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 18% 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 13% after the
cloud-software company late Tuesday reported fourth-quarter
earnings.
U.S. listed shares of Novogen Ltd.(NVGN) rocketed 49% after the
Australian biotech said studies show one of its drugs can kill
brain-cancer cells.
TiVo Inc.(TIVO) rallied 6.3% after reporting a surge in surge in
fourth-quarter profit late Tuesday.
Read about more of the day's notable movers here
(http://www.marketwatch.com/story/abercrombie-petsmart-hr-block-earnings-in-focus-2015-03-04).
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 little-changed
(http://www.marketwatch.com/storyno-meta-for-guid).
The dollar (USDJPY) inched lower against yen after weak ADP jobs
report.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires