By Anora Mahmudova and Sara Sjolin, MarketWatch
Private sector adds 189,000 jobs in March
NEW YORK (MarketWatch) -- U.S. stock futures pointed to more
losses on Wall Street Wednesday as investors assessed a
weaker-than-expected ADP employment report and waited for
manufacturing data and car sales.
Futures have been choppy, as big moves in currency markets
appeared to spur a selloff in equities. They then briefly ventured
into positive territory after strong European data
(http://www.marketwatch.com/story/eurozone-manufacturing-activity-picks-up-in-march-2015-04-01)
spurred a rally in those markets, but the upbeat sentiment has
since evaporated.
Futures for the Dow Jones Industrial Average (YMM5) dropped 60
points, or 0.3%, to 17,642, while those for the S&P 500 index
(ESM5) dropped 7.55 points, or 0.4%, to 2,053. Futures for the
Nasdaq-100 (NQM5) lost 14.75 points, or 0.3%, to 4,315.
Early selloff: During Asian hours, the benchmarks dramatically
weakened as the dollar pitched lower against the yen. "It's not
every day you see Nasdaq and S&P futures dropping 1.3% in
around 20 minutes, and 0.7% in three minutes, especially when risk
FX (such as AUD/USD) or copper didn't go along for the ride," IG
chief market strategist Chris Weston said in a note.
He said there was a lot of "head-scratching" going on over just
what triggered the drop in stock futures. It coincided with a fall
for the U.S. dollar against the yen (USDJPY). A lackluster reading
(http://www.marketwatch.com/story/japans-tankan-sentiment-survey-shows-few-gains-2015-03-31)
from the Bank of Japan's tankan corporate-sentiment survey prompted
investors to buy the yen, a perceived haven. The dollar traded at
Yen120.07, compared with Yen120.14 late Tuesday in New York.
Appetite for riskier investments was already weak in Asia after
sizable losses Tuesday
(http://www.marketwatch.com/story/us-stocks-fed-speakers-iran-keep-investors-on-edge-as-quarter-ends-2015-03-31)
for Wall Street. The S&P 500 (SPX) finished down 18.35 points,
or 0.9%, at 2,067.89, though it still recorded a quarterly gain of
0.4%, its ninth straight winning quarter.
Data: Private-sector employment gains continued in March but at
a slower pace than in the prior month. Employers added 189,000 jobs
last month, Automatic Data Processing Inc. reported Wednesday. ADP
revised February's gain slightly to 214,000 from a prior estimate
of 212,000.
The Markit purchasing managers index is due at 9:45 a.m.
Eastern.
At 10 a.m. Eastern, the Institute for Supply Management's
manufacturing index for March will be released. It is expected to
have slipped to 52.5% from 52.9% in February
(http://www.marketwatch.com/story/ism-manufacturing-slows-in-february-for-fourth-month-2015-03-02).
Construction spending for February comes out at the same
time.
Fed speakers: San Francisco Fed President John Williams
moderates a panel on financial stability at the Atlanta Fed policy
conference at 8:30 a.m. Eastern. Also on the docket today, Atlanta
Fed chief Dennis Lockhart appears on a monetary policy panel at an
Atlanta Fed conference at 11 a.m. Eastern.
Both are voters of the Federal Open Market Committee.
Stocks to watch: Shares of Hewlett-Packard Co.(HPQ) climbed 1.2%
premarket after Jefferies lifted its view on the computer maker to
buy. Jeffries sees "significant longer-term value" not reflected in
the current valuation.
Twitter Inc.(TWTR) picked up 1.4% ahead of the bell. Jefferies
initiated coverage with a buy recommendation and a $65 price
target.
Shares of Staples Inc.(SPLS) added 1.8% after KeyBanc Capital
lifted the office-supply company to overweight from sector
weight.
Monsanto Co.(MON) shares drifted lower after profit and revenue
fell below expectations.
Sarepta Therapeutics Inc. (SRPT) shares rallied 8.8% in
premarket trade Wednesday, after the biotech firm appointed Edward
Kaye as interim CEO with immediate effect and said it is pushing
ahead with regulatory and clinical work needed to gain approval for
its lead product candidate.
Other markets: Oil (CLK5) remained under pressure
(http://www.marketwatch.com/storyno-meta-for-guid) as talks on
Iran's nuclear program resumed in Switzerland after the deadline
was extended.
Metals were mixed, while the dollar struggled for direction
against (http://www.marketwatch.com/storyno-meta-for-guid)other
major currencies.
Asian stock markets closed mixed, with China's benchmark
Shanghai Composite Index ending above 3,800 for the first time
since 2008 (http://www.marketwatch.com/storyno-meta-for-guid).
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