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US Futures Slip as Payrolls Gain Less Than Expected, Trade Deficit Widens

U.S. stock futures moved lower Wednesday amid lower-than-expected payroll gains in May and as the April trade deficit widened to a 2-year high.

Among economic data out this morning, the ADP private payroll employment posted a 179,000 gain in May, well below the 210,000 gain expected, according to data compiled by Econoday. April ADP payrolls were revised downward to 215,000 from 220,000.

Also out this morning, the international trade deficit widened to $47.2 billion in April from $40.4 billion in March and above -$41 billion consensus.

Meanwhile, the nonfarm business productivity declined 3.2% in Q1 compared to a 1.7% drop in Q4 and was a bigger decline than the 2.9% decline expected by economists. Unit labor costs rose 5.7%, up from 4.2% in Q4 and compared to the consensus for a 5.2% increase.

Later this morning, at 10:00 a.m. the ISM non-manufacturing survey for May is expected to have edged up to 55.3 from 55.2 in April.

In equities, Dai-ichi Life Insurance agreed to buy Protective Life for $70.00 per share or $5.7 billion, driving PL shares higher 18% before the market open. Tibco Software ( TIBX ) dropped 13.4% after guiding for Q2 earnings below expectations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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