By Saumya Vaishampayan
U.S. stocks were poised for a lower open Wednesday, further
pulling back from records.
Dow Jones Industrial Average futures declined 44 points, or
0.2%, to 18142. S&P 500 futures fell six points, or 0.3%, to
2099, and Nasdaq-100 futures slipped 11 points, or 0.2%, to 4446.
Changes in stock futures don't always accurately predict moves in
the stock market after the opening bell.
Stock futures remained lower after data showed private payrolls
increased by 212,000 jobs in February, according to the national
employment report compiled by payroll processor Automatic Data
Processing Inc. and forecasting firm Moody's Analytics. Economists
surveyed by The Wall Street Journal had expected payrolls to
increase by 215,000 last month.
Earnings season is drawing to a close, helping shift the focus
back to the progress of the U.S. economy and the implications for
monetary policy. Labor-market data should attract attention this
week, culminating in the release of Friday's jobs report for
February. Strong economic data tend to heighten speculation about
when the Federal Reserve could raise short-term rates.
Premarket action marked a continuation of Tuesday's losses. On
Tuesday, the Dow industrials dropped 0.5% to 18203.37 and the
S&P 500 fell 0.45% to 2107.78, with both indexes retreating
from records. The Nasdaq fell 0.6% to 4979.90, pulling back from
its first close above 5000 in nearly 15 years.
The six-year bull market in U.S. stocks has been driven by an
improving economy, rising corporate profits and low interest rates.
Retail investors have flocked to safer parts of the stock market,
such as utilities stocks, which pay out large dividends.
"The lessons of 2008 are still with us," said Eddie Perkin, who
oversees about $35 billion as chief equity investment officer at
Eaton Vance Management. "To an extent that retail investors are
wading into equities, it's the part of the equity market that looks
the most like the bond market," he added.
In this environment, Mr. Perkin said he favors stocks in the
technology and health care sectors, which he characterizes as
defensive growth stocks. Those stocks have also benefited from a
wave of merger activity, which he said could continue.
European stocks mostly rose Wednesday. France's CAC 40 added
0.5% while Germany's DAX rose 0.3%. Investors are looking ahead to
a Thursday meeting of the European Central Bank, which could
provide details on how it will execute its bond-buying program. The
euro approached an 11-year low against the U.S. dollar, trading at
$1.1138.
In other markets, gold futures added 0.1% to $1205.40 an ounce.
Treasury price-action was similarly muted, with the 10-year note
yield trading at 2.112% versus 2.122% on Tuesday. Yields fall as
prices rise.
Crude-oil futures added 0.8% to $50.93 a barrel.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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