By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Markets
expected to take a breather from commodity watching
NEW YORK (MarketWatch) -- U.S. stock futures moved slightly
lower on Wednesday following weaker-than-expected data on
private-sector hiring and productivity.
The private sector added more than 200,000 jobs in seven of the
past eight months, though November's gain of 208,000 was below
forecasts. Productivity gains in the third quarter were revised
upwards, however, a sharp drop in labor costs indicates wages
continue to lag.
Futures for the Dow Jones Industrial Average (DJZ4) fell 4
points to 17,860, while those for the S&P 500 index (SPZ4) fell
1 point to 2,065.50. Futures for the Nasdaq-100 index (NDZ4) edged
up less than 1 point at 4,306.
A follow-up to Tuesday's big rally may not be in the cards,
though. The S&P 500 (SPX) and Dow industrials (DJI) scored
their best one-day percentage gain in roughly a month, lifted by a
rebound in energy stocks. Crude-oil prices were again moving
higher, along with gold, but analysts said investors are likely to
refocus back on the U.S. economic picture.
A peek into payrolls:Private-sector hiring slowed in November,
as employers added 208,000 jobs, ADP reported Wednesday. Analysts
watch the data closely, as it is used to get a feel for the larger
government employment report due Friday. The correlation between
those two numbers isn't foolproof, though.
Separately, U.S. companies and workers were more productive in
the third quarter than initially reported, but labor costs fell
sharply for the second straight time in a sign that wages continue
to lag behind. Productivity grew at a revised 2.3% annual pace
instead of 2%, newly revised government figures show.
The ISM nonmanufacturing survey for November is due at 10 a.m.
Eastern. After that, the Federal Reserve's Beige Book is due at 2
p.m. Eastern. The report is a collection of anecdotes from Fed
contacts around the country and gives the central bank a feel for
overall economic conditions ahead of its next meeting, scheduled
for December 16-17.
The European Central Bank also meets this week, on Thursday. The
pressure is expected to be on ECB President Mario Draghi and
officials to "provide when and how eurozone stimulus will appear
tomorrow", given recent disappointing eurozone PMI figures, said
Connor Campbell, financial analyst at SpreadEx. The composite PMI
fell to a 16-month low in November, weaker than the initial
estimate.
Stocks for Wednesday: Shares of Abercrombie & Fitch Co.(ANF)
dropped 6% following a lower-than-expected full-year earnings
forecast from the clothing retailer. Adjusted third-quarter
earnings of 42 cents a share came in a penny below Wall Street's
projection.
Apparel retailers Guess Inc.(GES) and Aéropostale Inc.(ARO) are
expected to report after the close.
Puma Biotechnology Inc.(PBYI) fell sharply in late trade after
the pharmaceutical company delayed its breast-cancer drug
application to early 2016. See Stocks to Watch
Other markets: European stocks posted moderate gains across the
board despite downbeat eurozone PMI data. The FTSE 100 index was
down slightly ahead of Chancellor of the Exchequer George Osborne's
Autumn Statement on the government's economic plans.
The dollar was mostly flat against the yen (USDJPY) after
setting a fresh 7-year high late Tuesday. However, the euro
(EURUSD) was at $1.2330, the lowest since August 2012.
January crude (CLF5) was up about 50 cents. American Petroleum
Institute data late Tuesday showed a steep fall in U.S. crude
inventories. Gold prices (GCG5) were trading higher, just over
$1,203 an ounce. Read: T. Boone Pickens predicts $100 a barrel is
coming back
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