US pre-open: Wall Street set to skid after underwhelming ADP report
Stock futures on Wall Street slid on Wednesday amid declines as a reading of US jobs underwhelmed market participants.
Dow Jones I.A.
38,374.75
04:30 15/10/20
Hewlett-Packard Co.
$27.79
05:10 23/04/24
Futures for the Dow Jones Industrial Average dropped 0.2% to 17656 while those for the S&P 500 were off 0.18% at 2054.
The benchmarks briefly erased losses after strong manufacturing data form the Eurozone and UK spurred a rally across however sentiment was dented by the disappointing ADP jobs data.
The ADP report, widely seen a precursor to the monthly nonfarm payrolls report showed the US economy added 189,000 in March, short of market forecasts. Economists had predicted that 225,000 jobs were created last month, up from 212,000 in February.
As such, the US labour market’s recovery was in question on Wednesday as investors worried the recent strength could soon diminish. Attention falls on the official nonfarm release on Friday which economists forecast will show 245,000 positions were created in March.
Eyes turned to the Institute for Supply Management’s manufacturing index for March will be released, which is expected to have slipped to 52.5% from 52.9% in February.
There’s more Fed speak on the way with San Francisco Fed President John Williams and Atlanta Fed chief Dennis Lockhart giving talks at different events. Both are voters of the Federal Open Market Committee.
In company news, shares of Hewlett-Packard climbed 1.2% premarket after Jefferies lifted the computer maker to buy, saying it sees “significant longer-term value” not reflected in the current valuation.