By Anora Mahmudova and Sara Sjolin, MarketWatch
Private sector adds 212,000 jobs in February, ADP says
NEW YORK (MarketWatch) -- U.S. stocks are slumping for a second
consecutive session on Wednesday, as investors assessed a
private-sector jobs report released ahead of the opening bell.
The Automatic Data Processing, Inc. report showed the private
sector added 212,000 jobs in February, slightly below
expectations.
The headline number came in below expectations; however, the
January number was revised sharply upward.
While the ADP report is met with skepticism by some economists,
who question its predictive ability, still, investors watch it to
get a feeling for the official jobs report due on Friday.
The S&P 500 (SPX) saw broad-based declines across all 10
main sectors, which traded deep in the red. Out of 500 stocks in
the index, less than 30 traded in the green. Alcoa led the
declines, after being downgraded by Bank of America Merrill
Lynch.
The Dow Jones Industrial Average (DJI) declined by triple
digits, with every single blue chip stock trading in negative
territory.
The Nasdaq (RIXF) retreated further below the psychologically
important 5,000 level reached on Monday.
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 strikes 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,
in a speech to a business group in suburban Chicago, said there is
no reason to 'hurry' to raise rates, until the Fed has much greater
confidence that inflation will rise to an annual target of 2%.
Evans is a voting member of the FOMC this year.
Kansas City Fed President Esther George, who isn't 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) dived after reporting fourth-quarter sales below
expectations.
American Eagle Outfitters Inc. (AEO) jumped 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 an upbeat outlook for the year at the teen
retailer.
Shares of Smith & Wesson Holding Corp.(SWB) surged 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) plummeted 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 after the
cloud-software company late Tuesday reported fourth-quarter
earnings.
U.S. listed shares of Novogen Ltd.(NVGN) rocketed 68% to $4.22
after the Australian biotech said studies show one of its drugs can
kill brain-cancer cells.
TiVo Inc.(TIVO) rallied 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.
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