By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Private sector employers add 213,000 jobs
NEW YORK (MarketWatch) -- U.S. stock futures were ticking lower
on Wednesday, slumping on weaker-than-expected private-sector jobs
report that threatened to end a two-day streak of solid gains,
which had been driven by a monster rally in crude oil prices early
in the week.
On Wednesday, oil was relinquishing some of its big Tuesday
gains, while investors digested a slew of earnings and economic
data.
Private employers added 213,000 jobs in January, according
Automatic Data Processing Inc., which was less than economists
polled by MarketWatch forecast. Economists use the number to get a
feel for the official jobs report due on Friday.
In choppy trade, futures for the Dow Jones Industrial Average
(DJH5) fell 24 points to 17,554, while those for the S&P 500
index (SPH5) fell 5 points to 2,037.10. Futures for the Nasdaq-100
index (NDH5) dropped 12 points, or 0.3%, to 4,203. Futures pares
some of the earlier losses after the People's Bank of China
announced a cut in its reserve-ratio requirement.
A rally for oil prices, and hence energy names, triggered the
biggest gain in more than three weeks for the Dow industrials
(DJI)(DJI) on Tuesday. The S&P 500 (SPX) jumped 1.4%, and the
Nasdaq Composite (RIXF) gained 1.1%.
But putting another day of big gains for stocks at risk was the
fact that oil prices were backing off Wednesday, with March WTI
crude (CLH5) dropping more than 3% and Brent crude down more than
2%. Losses came after data released late Tuesday showed a big
inventory build.
Need to Know: Careful what you wish for: Oil-price recovery may
well sting
A market battleground: Expect a "battle of the bulls and bears"
for Wednesday, said Michael O'Rourke, chief market strategist with
JonesTrading. He notes that so far in 2015, the S&P 500 has
been range-bound, with 1,980-1,990 as support and 2,050 -2,060 as
resistance.
Tuesday's close at 2,050 will have bulls "pushing for the
technical breakout" on Wednesday, despite the fact that positive
drivers are getting smaller and smaller on a daily basis, he said.
"With the growing list of negatives, we are continually amazed at
how many opportunities this market is giving investors to de-risk
within 2% of the all-time high," O'Rourke said in a note.
Stocks in the spotlight: Whirlpool(WHR) was up in premarket
after posting better-than-expected sales.
General Motors (GM.XX) shares rose 4% after it posted results
and said it would boost its dividend 20% to 36 cents a share.
Clorox Co.(CLX) is also ahead.
Merck (MRK) was down 2% after it released results.
Finally getting the deal done: Staples Inc.(SPLS) said it will
buy Office Depot Inc.(ODP) in an acquisition valued at $6.3
billion. Office Depot rose 2.6% and Staples was down 5% on that
news.
Walt Disney Co.(DIS) is up 4% after earnings beat forecasts. On
the losing side, Chipotle Mexican Grill Inc.(CMG) is down over 6%
after profit jumped but sales fell short of expectations late
Tuesday. Gilead Sciences Inc.(GILD) is off 7% after it reported
earnings that beat forecasts, but said it expects price discounts
for its hepatitis C drugs to double in 2015.
See more after-hours action in Movers & Shakers
China cuts reserve requirement for banks: The Nikkei 225 index
saw its biggest gain in two weeks on upbeat earnings. Well after
the close for Chinese stocks, which ended the day lower, the
People's Bank of China cut its reserve ratio for banks by 0.5%.
Among the reactions, gold (GCH5) and copper (HGH5) prices moved
higher.
The Stoxx Europe 600 index was largely flat after sizable gains
on Tuesday, led by a 11% surge for Greek stocks. The Athens
Composite Index was down 1.6% as Prime Minister Alexis Tsipras and
Finance Minister Yanis Varoufakis sought a debt deal with greater
leniency on repayments.
Read: European stocks mixed as Greece continues debt push
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