Stock futures are back on the defensive following a smaller than
expected gain in private payrolls according to a monthly report
from ADP. Employers added 175,000 new jobs last month following a
downward revision to December to 227,000. And although the harsh
winter weather has negatively influenced December data from initial
jobless claims to retail sales, ADP numbers tend to be insulated
from external factors. As a result, the expectation for economists
to revise their non-farm payrolls estimates lower is also having a
dampening effect on Wall Street this morning.
Another factor weighing on the markets was the inability for the
Dow Industrials to close above its 200-day moving average on
Tuesday. This led most technicians to claim that bears still had a
solid grip on the market, amplified by bearish fundamentals such as
the downgrade in Puerto Rican municipal debt, continued weakness in
emerging markets and lingering pressure on the dollar.
In Europe, the financial markets are giving back their marginal
gains achieved overnight in sympathy with softer U.S. markets.
The remaining data for today includes the Institute for Supply
Management index non-manufacturing index for January, expected to
improve slightly to 53.7 from 53.0 in December.
-Dow Jones Industrial down 0.18%
-S&P 500 futures down 0.30%
-Nasdaq 100 futures down 0.23%
Nikkei up 1.23%
Hang Seng down 0.60%
Shanghai Composite down 0.82%
FTSE-100 up 0.25%
DAX-30 down 0.28%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: lower
(-) Chip stocks: lower
(-) Software stocks: lower
(-) Hardware stocks: lower
(+/-) Internet stocks: mixed
(+/-) Drug stocks: mixed
(-) Financial stocks: lower
(-) Retail stocks: lower
(-) Industrial stocks: lower
(-) Airlines: lower
(-) Autos lower
RL (+5.80%) Q3 earnings topped expectations, raised FY 2013
guidance and increased share buyback by $500 million
MYGN (+11.85%) Beat earnings estimates, raised guidance and
announced plans to purchase Crescendo Bioscience for $270
SEV (+24.16%) Reported EPS of $0.14 per diluted share, compared
with a net loss of $0.39 per share, in the same period last
RPTP (-8.68%) Wedbush Morgan downgraded the stock to
Underperform from Neutral.
CVS (-1.68%) Announced plans to stop selling tobacco products by
October 1, 2014.
EXTR (-17.90%) Missed Q2 earnings estimates and lowered Q3
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