RTTNews - After posting mild gains in the previous session, stocks are poised to open Wednesday's session modestly lower following an employment report that showed a continued decrease in private sector jobs. The major index futures are currently all in negative territory, with the Dow futures down by 29 points.
Private sector employment experienced another notable decline in the month of May, according to a report released by Automatic Data Processing, Inc. (ADP), with the decrease in jobs slightly exceeding economist estimates.
ADP said non-farm private employment fell by 532,000 jobs in May following a revised decrease of 545,000 jobs in April. Economists had expected a decrease of about 525,000 jobs compared to the decline of 491,000 jobs originally reported for the previous month.
Later this morning, the Institute for Supply Management is due to release its report on activity in the service sector, while the Commerce Department will release data on factory orders, with both reports covering the month of May.
Bond market players will also look to another quantitative easing move from the Federal Reserve Wednesday morning. The New York arm of the Fed will purchase treasuries set to mature between May of 2016 and May of 2019. The buyback is set to begin at 10:15 a.m. ET.
Traders will also look to testimony from Federal Reserve Chief Ben Bernanke, who is scheduled to testify before the House Budget Committee in Washington on the current economic climate. The testimony is set to begin at 10:00 a.m. ET.
On the corporate front, NetApp (NTAP) said it has made a revised proposal to acquire Data Domain (DDUP). As per the terms of the proposal, NetApp will acquire all outstanding shares of Data Domain common stock for $30 per share in cash and stock in a transaction valued at approximately $1.9 billion.
Meanwhile, Toll Brothers (TOL) reported a second quarter net loss of $83.17 million or $0.52 per share, compared to a net loss of $93.74 million or $0.59 per share last year. Excluding write-downs, the loss was $5.2 million, or $0.03 per share. Wall Street analysts expected a loss of $0.44 per share.
Following its bankruptcy filing on Monday, General Motors confirmed Tuesday that China-based Sichuan Tengzhong Heavy Industrial Machinery Co. is the buyer of its Hummer brand.
After seeing choppy trading for most of the session, stocks were able to end Tuesday's trading mostly higher. The major averages all finished the day in positive territory, extending their winning streak for a fourth straight session.
The Dow finished up by 19 points at 8,741, the Nasdaq closed up 8 at 1,837 and the S&P 500 finished up by 2 points at 945.
In early commodities trading, crude oil futures are slipping, falling by $0.80 to $67.75 a barrel, while gold futures are also retreating, dropping by $7 to $977.40 an ounce.
On the currency front, the U.S. dollar tried to gain some footing against the major European currencies after a notable retreat in recent weeks. The buck inched to $1.4207 against the euro and drifted to $1.6520 against the pound. The dollar continues to remain in a range versus the yen, rising to 95.87 yen.
In overseas trading, stock markets across the Asia-Pacific region finished modestly higher. Japan's benchmark Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng climbed by 1 percent.
Meanwhile, the major European markets are currently all moving lower. The U.K.'s FTSE 100 Index is down 1.8 percent, while the French CAC 40 Index and the German DAX Index are down 1.3 percent and 0.7 percent, respectively.
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