Stock futures are higher this morning on a day packed with
ADP, the payrolls processing company, reported that the US private
sector added 215,000 jobs last month. This beat expectations by
30,000. The October report was also revised upward by 54,000 to
184,000. This is a preview for Friday's jobs report, which could
greatly influence the Federal Reserve's decision on whether or not
to scale back quantitative easing. Economists expect just 180,000
new jobs in the Friday report.
Still ahead today are new-home sales for both September and
October. September new-home sales likely rose to a seasonally
adjusted annualized rate of 420,000. Economists believe that the
pace of new-home sales also sped up in October to 425,000. The
ISM's non-manufacturing index will also be released. It is expected
to rise to 55.5 from 55.4, indicating that services activity
Before the opening bell,
(INDEXDJX:.DJI) futures were flat at 15,891.00 while futures on the
(INDEXSP:.INX) fell 0.04% to 1,790.70.
(INDEXNASDAQ:.IXIC) futures rose 0.04% to 3,477.25.
The European Union ruled today that it will levy a 1.71 billion
euro fine on six financial institutions for fixing benchmark
interest rates including Libor.
), will be fined 80 million euros and
) will pay 70 million euros.
) was fined the most at 725.4 million euros.
"What is shocking about the Libor and Euribor scandals is not only
the manipulation of benchmarks, which is being tackled by financial
regulators worldwide, but also the collusion between banks who are
supposed to be competing with each other," said Joaquin Almunia,
the European Union Competition Commissioner.
) saw comparable-store sales rise 10.1% last month. The news
sparked a rally yesterday, and shares are up 1.2% in the
John Gilbert, the chief investment officer of General Re-New
England Asset Management, which is owned by Warren Buffet's
) in a letter to investors. He compared the social network to
), which peaked sharply during the dot-com boom when people thought
it would change the world.
Overseas shares were lower following economic data releases.
China's service industry grew more slowly in November. The
HSBC/Markit PMI survey fell to 52.5 from 52.6 in October. (Readings
over 50 indicate growth.)
The French services sector PMI declined to 48 from 50.9. Meanwhile,
services in Germany accelerated to 55.7 from 52.9. Services PMI for
the eurozone as a whole were better than expected at 51.2.
The eurozone economy grew 0.1% on a quarterly basis in the third
quarter, falling in line with expectations. GDP fell 0.4% from a
year earlier, however. Retail sales in the region unexpectedly fell
0.2% in October.
News reports hinted that Japan is preparing a stimulus package
worth 18.6 trillion yen to soften the blow of of a rise in sales
taxes that will take effect in April.