By Anora Mahmudova and Sara Sjolin, MarketWatch
ADP report shows private sector added 212,000 jobs in
February
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 upwards. Market reaction to the
data was muted.
Investors watch the ADP report to get a feel 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.
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: 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.
"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 inched lower against yen after weak ADP jobs
report.
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 6.4% 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.
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.
TiVo Inc.(TIVO) rallied 6.7% 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 mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid).
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