By Sara Sjolin, MarketWatch
Herbalife climbs more than 15% premarket
U.S. stocks were set to rebound Wednesday, with futures nudging
higher ahead of the ADP employment report, which will be closely
watched for clues to Friday's key nonfarm-payrolls number.
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 67
points, or 0.4%, to 17,931, while those for the S&P 500 index
(ESM5) climbed 7 points, or 0.3%, to 2,091.00. Futures for the
Nasdaq 100 index (NQM5) gained 4.75 points, or 0.1%, to
4,412.25.
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 ADP employment report is due at 8:15 a.m. Eastern
Time. The consensus estimate calls for 193,000 jobs to have been
added to private payrolls in April, according to FactSet, up from
the 189,000 recorded in March.
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.
Also due Wednesday are first-quarter productivity and labor
costs, scheduled for release at 8:30 a.m. Eastern Time.
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.
SodaStream International Ltd.'s(SODA) first-quarter earnings met
FactSet consensus estimates, but revenue came short of
forecasts.
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.
Transocean Ltd.(RIG), Whole Foods Market Inc.(WFM) and Keurig
Green Mountain Inc.(GMCR) are also on tap after the market
closes.
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 3.7% 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)
to $14.3 million, from a loss of $37.8 million a year earlier.
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.
And the U.S.-listed shares of Nokia Corp.(NOK) picked up 4.1%
after news that a consortium of German car makers are preparing to
launch a formal bid to buy a majority stake in Nokia's Here mapping
unit
(http://www.marketwatch.com/story/german-car-makers-set-to-bid-for-nokia-map-service-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 metals dropped across the board. The dollar (DXY) was mostly
lower against other major currencies.
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