MW: U.S. stock futures drift before ADP employment report
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures drifted lower on Wednesday as markets await data on employment two days ahead of a key government report.
S&P 500 futures fell 2.6 points to 1,129.70 and Nasdaq 100 futures fell 1.25 points to 1,884.00. Futures on the Dow Jones Industrial Average fell 16 points.
U.S. stocks drifted Tuesday after a strong start to 2010, with the Dow Jones Industrial Average falling 12 points while the S&P 500 rose 4 points and the Nasdaq Composite finished broadly unchanged. Pending-home sales slumped 16% in November, while car sales were surprisingly strong.
Wednesday's docket features the ADP's estimate of payrolls in December, two days ahead of the government report, as well as services sector data and minutes from the last Federal Reserve interest-rate-setting meeting. Recent speeches have made it clear that the U.S. central bank has no intention of raising interest rates anytime soon.
"The December FOMC minutes should reflect a more upbeat discussion of economic prospects; this discussion led to several changes to the FOMC statement that indicated better labor market conditions and improved financial market conditions," said economists at Barclays Capital.
Commodities futures were mixed on reaction to the cold weather and its impact on global demand. Oil futures traded around $81.70 a barrel while most metals futures, notably copper, traded higher. Weekly energy inventories data also is due for release.
The dollar index (DXY 77.75, +0.14, +0.17%) rose 0.1% following comments from a European Central Bank board member that other E.U. states won't aid debt-laden Greece. Meanwhile, Japan's Finance Minister Hirohisa Fujii has resigned and will be replaced by the country's Deputy Prime Minister Naoto Kan.
The agrichemical sector will be in the spotlight after Mosaic (MOS 63.15, +1.44, +2.33%) reported a weaker-than-forecast 89% drop in fiscal second-quarter result, with Monsanto (MON 85.27, +1.84, +2.21%) expected to report a break-even result.
Elsewhere, Family Dollar (FDO 28.55, +1.06, +3.86%) and, after the close of trade, Bed Bath & Beyond (BBBY 38.67, -0.36, -0.92%) , report results.
The Nikkei 225, ahead of the Fujii resignation, rose 0.5% in Tokyo, while the FTSE 100 weakened 0.2% in London.