By Sara Sjolin, MarketWatch
Herbalife climbs more than 15% premarket
U.S. stocks-index futures were trading slightly higher on
Wednesday, as investors assessed private-sector employment report
and productivity data, both of which came in lower than
expected.
The pace of hiring in the private sector slowed in April, while
productivity slumped for the second quarter in a row.
Federal Reserve Chairwoman Janet Yellen was also in the
spotlight ahead of a panel debate with the head of the
International Monetary Fund, Christine Lagarde.
Futures for the Dow Jones Industrial Average (YMM5) rose 54
points, or 0.3%, to 17,916, while those for the S&P 500 index
(ESM5) climbed 4 points, or 0.2%, to 2,088. Futures for the Nasdaq
100 index (NQM5) gained 3.5 points, or 0.1%, to 4,411.75.
The benchmarks closed sharply lower on Tuesday, with the S&P
500 (SPX) suffering its biggest one-day percentage decline
(http://www.marketwatch.com/storyno-meta-for-guid) in six weeks.
The selloff was partly fueled by a weak trade-deficit report, which
showed the U.S. trade gap is at its widest in almost seven
years.
Data: The U.S. created 169,000 private-sector jobs in April,
payrolls processor ADP said, after a downwardly revised 175,000
jobs were created in March, well below the consensus estimate.
The ADP figure is seen as a prelude to the nonfarm-payrolls data
due on Friday and will either be "warming us up or getting us
nervous", said analysts at Accendo Markets in a note. The Federal
Reserve has said it's looking closely at the labor market when
assessing the best timing for its first rate hike.
U.S. productivity in the first quarter fell by a 1.9% annual
pace, resulting in the first back-to-back drop since 2006. The
decline in productivity stemmed from companies hiring more workers
and employees worker longer hours even as production of goods and
services declined.
Fed speakers: Yellen appears on the panel with Lagarde at the
Institute for New Economic Thinking conference at 9:15 a.m.
Eastern, in Washington, D.C.
Kansas City President Esther George appears on a panel on
credit-market booms and busts at 1:15 p.m. Eastern, at the same
conference. George is not a voting member of the policy-setting
committee this year.
Atlanta Fed President Dennis Lockhart will give a speech to the
Baton Rouge Rotary Club in Baton Rouge, Louisiana at 1:30 p.m.
Eastern.
Earnings: Reporting ahead of the bell, fast-food chain Wendy's
Co.(WEN) released first-quarter adjusted earnings per share that
slightly beat consensus, but revenue missed forecasts. Still,
shares jumped 6%.
SodaStream International Ltd.'s(SODA) first-quarter earnings met
FactSet consensus estimates, but revenue came short of forecasts.
Shares fell 3%.
After the bell, Tesla Motors Inc.(TSLA) is expected to report,
with investors eager to hear what the electric-car maker has
planned
(http://www.marketwatch.com/story/what-to-look-for-in-tesla-earnings-2015-05-05)
for its new line of business -- home and commercial batteries.
Movers and shakers: Shares of Herbalife Ltd.(HLF) climbed 15% in
thin premarket trade after the nutrition-supplement maker late
Tuesday raised its outlook for the year
(http://www.marketwatch.com/story/herbalife-raises-guidance-as-earnings-grow-48-2015-05-05-174852122)
as earnings rose a stronger-than-expected 4.8% in the first
quarter.
Groupon Inc.(GRPN) dropped 1.9% ahead of the bell after the
online deal company on Tuesday said its first-quarter loss narrowed
(http://www.marketwatch.com/story/groupon-adjusted-profit-sales-in-line-with-views-2015-05-05).
Shares of Synageva BioPharma Corp.(GEVA) soared 130% after news
Alexion Pharmaceuticals Inc. (ALXN) will buy the biotech firm in a
cash-and-stock deal valued at $8.4 billion
(http://www.marketwatch.com/story/alexion-to-buy-synageva-in-84-billion-biotech-deal-2015-05-06).
Alexion shares lost 3.9% ahead of the bell.
U.S.-listed shares of Anheuser-Busch InBev NV(AHBIY) picked up
3% in premarket action after the Belgian brewing company said a
derivatives gain pushed up its net profit sharply
(http://www.marketwatch.com/story/ab-inbev-profit-jumps-strong-dollar-weighs-2015-05-06)
in the first quarter.
For more on today's notable movers read Movers & Shakers
column
(http://www.marketwatch.com/story/sodastream-tesla-keurig-green-mountain-earnings-in-focus-2015-05-06).
Other markets:Asian markets
(http://www.marketwatch.com/storyno-meta-for-guid) closed lower,
while European stocks
(http://www.marketwatch.com/storyno-meta-for-guid) were mostly
higher.
Crude oil (CLM5) moved above $62 a barrel for the first time
since December (http://www.marketwatch.com/storyno-meta-for-guid),
while gold prices erased losses and were flat. The dollar (DXY) was
mostly lower against other major currencies.
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